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AmBank Group Q1FY2012 Results - Investors Presentation

VIEWS: 90 PAGES: 53

									          AMMB Holdings Berhad




AmBank Group
Investors Presentation
 Q1 FY2012 Results
       15 August 2011




       Cheah Tek Kuang
    Group Managing Director

                                 AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   1
Contents




           1.   Executive summary

           2.   Q1FY2012 Group Financial Performance

           3.   Strategy & Outlook

           4.   Divisional Performance

           5.   Supplementary Information




                             AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   2
Good start to FY2012

 Pre ANZ Partnership Focus                                               Scale & Presence

   ANZ Partnership Focus                                                Reposition & Build
      (FY2008/2011)



   FY2012 Focus                  Continued growth momentum
 Improving Returns                      PATMI up 20%, improving ROE


                                        Profit growth underpinned by higher non-interest income & lower
                                        allowances
       Q1FY2012
       Highlights                       Strong deposits and targeted loans growth, but higher than expected
                                        NIM compression


                                        Capital levels positioned for Basel 3 and target payouts


                                        Execute to strategic themes (MTA), strengthen market positions &
                                        leverage on ANZ’s international connectivity



 Medium Term Aspiration      To Become Malaysia’s Preferred Banking Group with International Connectivity
        (MTA):
    FY2012 – FY2014          measured by customer satisfaction, sound financial performances, well diversified & sustainable growth


                                                                       AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   3
Good start to FY2012

                   Continued strong                                                                     YoY Change                                                                             CAGR
                                                                         Q1FY12             Q1FY11                    ∆%                    Q4FY11                     FY11
                     performance                                                                                                                                                             (FY07-11)


                                 PBP                                    681.1 mil           608.6 mil                11.9%                 565.6 mil               2,351.1 mil                  8.9%
  Performance




                              PATMI                                     441.5 mil           368.3 mil                19.9%                 316.3 mil               1,342.8 mil                 24.6%1

                                 ROE                                      17.0%              15.4%                   1.6%                    12.7%                    13.6%                     4.9%

                                 ROA                                      1.69%              1.58%                   0.11%                   1.26%                    1.39%                     0.4%
                                  EPS                                    14.82 sen          12.22 sen            2.5 sen                   10.52 sen                 44.7 sen                  14.4%1
                               (basic)


                                                                Strong Q1FY2012 performance
                                                                    Higher income, reflecting strong performance for non-interest income
                                                                    Improvement in asset quality with lower charge offs/allowance
 Diversification




                      Broad based                                                           Corporate &
                                                                   Retail       Business                     Investment           Markets            Life          General           Transaction* Islamic*
                    earnings growth                                                         Institutional


                   Q1FY12 vs Q1FY11                            +14.1%           +47.5%        +40.7%           +68.1%             +34.6%           -29.5%          +73.4%               +45.7%           -1.1%
                    PATMI growth


                                                                        Better asset quality underpinned Retail Banking’s profit growth
                                                                        Diversified portfolios yielding higher profits in Business Banking, Corporate & Institution Banking,
                                                                        Investment Banking, Markets and General Insurance
                                                                        Life Assurance: increasing focus on Bancassurance and better performing agencies
* Performances integrated to divisional outcomes
1 CAGR computed based on FY2007 underlying profit of RM556.9 million.
2 Not annualised


                                                                                                                           AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   4
     Sound loans and deposits growth; improved risk & financial disciplines

                          Sound loans and                                                                                                                     YoY Change                                                                                                CAGR
                          deposits growth                                                         Q1FY12                               Q1FY11                                                ∆%                             FY11
                                                                                                                                                                                                                                                                      (FY07-11)


                                 Net Lending1                                                     72.8 bil                              66.2 bil                                          10.0%                          71.1 bil                                          9.0%
   Growth




                               Adjusted                                                           83.6 bil                              72.1 bil          To be updated
                                                                                                                                                                   16.0%                                                 81.3 bil                                         15.4%
                          Customer Deposits2
                                         CASA                                                     10.0 bil                               8.4 bil                                          19.3%                           9.9 bil                                         16.9%

                                                                                                 Asset growth targeted at profitable and viable segments
                                                                                                 Strong deposit growth via expanded product and service offerings
                                                                                                 Implemented customer segmentation to enhance share of wallet


                          Improved risk &                                                                                                                                         YoY Change
                        financial disciplines                                                        Q1FY12                                                Q1FY11                                            ∆%                                                         FY11


                          Gross impaired loans                                                        2.96%                                                 3.60%                                         0.64%                                                       3.33%
Funding Profile
Risk, Capital &




                                        RWCAR                                                      13.7% /      14.1%5                                  16.7% / 17.1%5                                     3.0%                                                       14.4%
                                     Tier 1 CAR                                                     9.7% /      10.1% 5                                 10.0% / 10.5%5                                     0.3%                                                       10.2%

                                          CET-1                                                     7.6% /      8.0%5                                      7.8% / 8.4%5                                    0.2%                                                         8.0%

                                      LD Ratio3                                                       87.1%                                                 91.9%                                          4.8%                                                       87.4%

                                             CTI                                                      38.5%                                                 38.5%                                               -                                                     39.9%


                                                                                                 Proactive risk management
                                                                                                 Implemented FRS disciplines under BNM transitional provisions and new FTP4

        1         Includes Islamic loans sold with recourse                                             3     Based on net loans including loans sold with recourse over adjusted customer deposits   5   Estimated capital ratios include Q1FY12 unappropriated profits of AmBank (M) Bhd Group, AmIslamic
        2         Adjusted customer deposits include term funding and loans sold with recourse          4     Funds transfer pricing                                                                      Bank & AmInvestment Bank Group

                                                                                                                                                                            AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012                                              5
Medium Term Aspiration: Strategic priorities & growth levers


                                          Measured by:
  To become Malaysia’s                    •  customer satisfaction
  Preferred Banking Group with
  International Connectivity              •  sound financial performances
                                          •  well diversified and sustainable growth




               Strategic Priorities                                       Growth Levers

                                                  1. Leverage international connectivity
     Profitable growth and rebalancing
                                                  2. Invest to grow income
     Diversification and new business
     development
                                                  3. Enhance customer share of wallet
     Non-interest income and deposit growth
                                                  4. Capitalise on ETP
     Customer centricity
                                                  5. Upgrade capability and productivity




                                                     AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   6
             AMMB Holdings Berhad




AmBank Group
Investors Presentation
 Q1 FY2012 Results
         15 August 2011




          Ashok Ramamurthy
   Deputy Group Managing Director &
      Group Chief Financial Officer

                                      AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   7
Contents




           1.   Executive summary

           2.   Q1FY2012 Group Financial Performance

           3.   Strategy & Outlook

           4.   Divisional Performance

           5.   Supplementary Information




                            AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   8
 Strong profit underpinned by higher non-interest income & lower allowances

                                                                                                                                                                 Financial Performance


                                                                                                                                                                 Income: up 11.9%
                                                                                                                                                                   Non interest income =
                          44.3%          11.9%            11.9%           11.9%           23.3%   18.2%      14.6%          19.5%                    19.9%
                                                                                                                                                                   ~40% of total income
                                                                                                                                        8.2%       441.5 mil
                                                                                                                                                                 Expenses: up 11.9%
                                                                                                                                                                   Salary & staffing
368.3 mil       2.5%                                                                                                                                               increases, ongoing
                                                                                                                                                                   medium term
                                                                                                                                                                   investments but
                                                                                                                                                                   within CTI targets
                                                                                                                                                                 Faster NIM compression
                                                                                                                                                                 due to
                                                                                                                                                                   Expected factors such
                                                                                                                                                                   as term funding raised
                                                                                                                                                                   in FY2011, competitive
                                                                                                                                                                   pressures in retail and
                                                                                                                                                                   mix effects of growing
                                                                                                                                                                   non-retail
                                                                                                                                                                   Unexpected factors
PATMI       Net Interest Non-Interest    Total                                     Provisions/                                                      PATMI
Q1FY11        Income       Income       income
                                                      Expenses           PBP
                                                                                   Allowances
                                                                                                  PBT         Tax           PAT           MI
                                                                                                                                                    Q1FY12         such as rapid increase
                                                                                                                                                                   in SRR, increase in
 Q1FY12
(RM’mil)
              668.8         438.8       1,107.6           426.5          681.1            70.9    610.2      154.2         456.0         14.5                      interbank placements
                                                                                                                                                                   arising from a better
 Q1FY11                                                                                                                                                            LDR, some retail asset
              685.7         304.1        989.8            381.2          608.6            92.4    516.2      134.5         381.7         13.4
(RM’mil)
                                                                                                                                                                   mix effects and falling
Variance       -16.9        134.7        117.8            45.3           72.5             -21.5   94.0        19.7          74.3          1.1                      longer term yield
                                                                                                                                                                   curves due to global
                                                                                                                                                                   events
                  PATMI       Positive growth in Q1FY12           Contraction in Q1FY12


                                                                                                          AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   9
 Diversified divisional contributions
     PATMI (by division)



                                                                                                      34.6%           29.5%      73.4%      >100%          45.7%      19.9%
                                                                                  68.1%                                                                                                           PATMI contribution
                                                            40.7%                                                                                                  441.5 mil
                                       47.5%
                 14.1%                                                                                                                                               13%
368.3 mil                                                                                                                                                                                     Business
                                                                                                                                                                                                19%                           Retail
                                                                                                                                                                                                                               34%
   16%

                                                                                                                                                                                  CIB
                                                                                                                                                                                 16%
                                                                                                                                                                     87%

                                                                                                                                                                                                                           Operating, -7%
   84%                                                                                                                                                                               Investment
                                                                                                                                                                                        10%
                                                                                                                                                                                                         Markets
                                                                                                                                                                                                          19%
                                                                                                                                                                                                                                       General
                                                                                                                                                                                                                                         5%
                                                                                                                                                                                                                             Life
                                                                                                                                                                                                                             4%
 PATMI                                      Corporate &                                                                  Life    General Operating               PATMI
             Retail             Business                  Investment                                 Markets                                        Transaction*
 Q1FY11                                     Institutional                                                            Assurance^ Insurance Segments               Q1FY12
                Retail              Business Corporate & Investment                                 Markets             Life    General   Operating Transaction
 Q1FY12        banking              banking Institutional Banking                                                    Assurance Insurance Segments     Banking                           Life Assurance: lower profits transferred
             150.9                 84.5                   71.5                    44.2                 85.2            16.7       22.2       -33.7         42.1
(RM’mil)                                                                                                                                                                                in Q1FY2012 pending business model
 Q1FY11                                                                                                                                                                                 refinements
             132.2                 57.3                   50.8                    26.3                 63.3            23.7       12.8        1.9          28.9
(RM’mil)

Variance      18.7                 27.2                   20.7                    17.9                 21.9             -7.0       9.4       -35.6         13.2
                                                                                                                                                                                        Operating segments impacted by higher
                                                                                                                                                                                        funding cost & prudent acceleration of
                                                                                                                                                                                        provisions on specific accounts

            Conventional PATMI                        Islamic PATMI                        Positive growth in Q1FY12               Contraction in Q1FY12

             *Performances integrated to divisional outcomes
             ^ Life Assurance surplus is transferred into life policy shareholders’ fund in overall Group accounts




                                                                                                                                                       AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   10
Growing non-interest income; faster than expected NIM compression
         Non-interest income movement
         As % of total income
             22%                                     29%                               30%               31%                                                                                                      40%
                                                                                      1,170.3
         RM' Mil                                 1,040.3                               21.6
                                                     18.2                              172.0     64.0                                                                 44.3%
                                                    123.7
                638.2                                                                  302.4
                                                    288.1
                                                                                                                           21.9%                       >100%                  3.7%              5.4%              438.8
                 (0.9)
                                                                                                         304.1
                  121.3                                                                                                                                                                                             3.5      1%
                                                                                                                                                       98.1                   1.9                                  53.9      12%
                    6.6                                                                                    3.7
                                                                                                                          34.8
                                                    610.3                              674.3              52.0
                  511.2                                                                                                                                                                                           187.5      43%
                                                                                                          89.4
                                                                                                                                                                                                                  193.8      44%
                                                                                                         159.0
                                                                                                                                                   Trading &              Insurance
                  FY09                              FY10                               FY11            Q1FY11          Fee Income                                                              Others            Q1FY12
                                                                                                                                                  Investment               Business
                                                                     Fee Income                 Trading & Investment      Insurance Business                     Others




        NIM and Cost of Funds
                  3.44%
                                                                                                             3.08%           3.05%                                                                3.01%                 3.08%
                                                      2.98%                             2.94%                                                            2.95%                  2.90%                                               NIM /
                                                                                                                                                                                                                                     COF
                  3.04%                                                                                      2.65%
                                                                                        2.92%                                2.86%                       2.91%                  2.90%             2.85%                     2.65%
                                                      2.68%
                                                                                                           3.00%                                                                                                    3.00%
                                                                                       2.75%                                                             2.75%                 2.75%             2.75%
                                                                                                                            2.50%
                                                    2.25%                                                     3.00%                                                                                                     3.00%
                 2.00%                                                                                                                                                                                                              OPR /
                                                                                                                                                                                                                                     SRR
                                                                                                                                                                                                                2.00%

                 1.00%                               1.00%                              1.00%                               1.00%                        1.00%                 1.00%             1.00%
                 FY09                             FY10                                FY11             Q1FY12            Q1FY11                        Q2FY11                 Q3FY11            Q4FY11             Q1FY12
Note :
1   Net Interest Margin includes Net Financing Income from Islamic Banking business                                               Cost of Fund             NIM                OPR        SRR
2   FY09-Q1FY12 based on internal data computation

                                                                                                                                                 AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012       11
Lower loan loss provisioning, in part from higher recoveries

 Asset Quality Indicators
    10.4%




                                                                                     FRS 139
                                                                               GP3
                                                                                                                                                              Gross Impaired Loans

    6.2%                    6.3%                                                                                                                              • Retail Bkg: 2.84%
                                                                                                                                85bps                         • Business Bkg: 1.59%
                                           4.1%                                                      3.81%
                          3.7%
    3.18%                                                                                                                     3.33%                   2.96%
                                           2.6%                    2.8%

                                                                   1.5%
                          0.97%            0.60%                                                                            0.67%                     0.40%       27bps
                                                                       0.88%

            Net Provisions Charge      Net NPL Ratio            Gross NPL Ratio                      Gross Impaired Loans               Loan Loss Charge

                                                                                                     Day 1
      FY2007              FY2008            FY2009                FY2010                                                    FY2011                 Q1FY2012
                                                                                                  [1 April 10]

  RM’bil                                                            99.5%                                                    102.3%
                                                                                                     89.1%                                            112.7%
                                             75.1%
                            67.3%
      56.6%                                                                                                                                              Allowance Coverage:


                                                                                        FRS 139
                                                                               GP3
                                                                                                                                                         • Retail Bkg: 102.4%
                                                                                                                                                         • Business Bkg: 121.8%


       5.53
                            3.60
       3.18                                   2.43
                                                                     1.87                             2.54                    2.45                     2.23
                            2.02              1.50                   1.01
            Net NPL        Gross NPL     Gross Impaired Loans           Loan Loss Coverage                       Allowance Coverage
                                                                                                  AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   12
New gross impaired loans formation, conversions, recoveries and write-offs; Within
expectations

                                                                                                          % Gross NPL / Impaired Loans Conversion to Gross Loans
  % New Gross NPL / Gross Impaired Loans to Gross Loans
  1.80%                                                                                                   1.20%


  1.20%                                                                                                   0.80%


  0.60%                                                                                                   0.40%



  0.00%                                                                                                   0.00%
                 Q1                            Q2                             Q3          Q4                              Q1                 Q2                 Q3                Q4
                           Q1                            Q2                        Q3       Q4                               Q1                 Q2              Q3                  Q4


   % Recoveries to Avg Gross Loans                                                                         % Write-Offs to Avg Gross Loans

    0.60%                                                                                                  2.00%

                                                                                                           1.50%
    0.40%
                                                                                                           1.00%
    0.20%
                                                                                                           0.50%

    0.00%                                                                                                  0.00%
                   Q1                             Q2                          Q3           Q4                                Q1               Q2                 Q3                 Q4



                                                                                   GP 3                                   FRS 139

                                                                     FY2004 -FY2007       FY2008-FY2010             FY2011           Q1FY2012
                   Note :
                   1 FY2004 and FY2005 financials based on gross before IIS


                                                                                                                   AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   13
  Loans portfolio rebalancing continues
   Gross Loan / Financing (including Islamic financing sold to Cagamas) movement
                                                        Retail                                                                              Non-Retail
                                                         2.9%                                                                                  24.5%                                    10.0%
                                                                                                                                                   29.0%           >100.0%            75.4bil

                                                                                                                                  28.3%
                   0.2%           7.2%              10.9%               9.4%                13.3%               5.4%
                                                                                                                                                                                       38%



  68.5 bil


    34%

                                                                                                                                                                                        62%


    66%




    % of
                  34%        19.3%               1.3%                  1%                2.9%                3.5%              20%               18%                 0%
composition
 Gross Loan Auto Financing   Mortgage      Credit Cards           Line of Credit         Co-Op          Asset Financing                       Corporate &           Others        Gross Loan
                                                                                                                             Business
  Q1FY11                                                                                                                                      Institutional                        Q1FY12
  Q1FY12
                 25.7          14.5               1.0                  0.8                2.2                 2.7              15.0               13.6                -0.1
  (RM’bil)
  Q1FY11
                 25.8          13.6               0.9                  0.9                1.9                 2.5              11.7               10.5                0.7
  (RM’bil)

                               Retail            Non-Retail                 Positive growth in Q1FY12         Contraction in Q1FY12


  Gross loan portfolio trends:
                                         Total                                                   Fixed interest rate                                     Variable interest rate
                              Mar-08                    June-11                          Mar-08                     June-11                        Mar-08                    June-11
  Conventional                 82%                        79%                             47%                         32%                           38%                        48%
  Islamic                      18%                       21%                               15%                         14%                          0.1%                       5.5%
                              100%                       100%                              62%                         46%                           38%                       54%

                                                                                                         AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   14
More stable funding and well distributed debt maturities


      RM'bil                     Rising individual & government deposits                                                                                                                                Improving funding composition
                                                                                                                               83.6                                                                7.4%                              4.3%           4.2%
                                                                                                 81.3                                                                                                        1.2%   4.9%      0.6%
                                                                                                                                                                 9.2%                     1.0%                                               0.7%
                                                                    70.7                                                     16.4                           3.0%                                   0.7%             1.5%             6.9%           6.6%
                                                                                                 16.3                       [20%]                                2.0%
                                        65.2
                                                                    11.2
        57.9                           10.9
                                                                                                                             28.8
           9.0                                                                                   27.4                       [34%]
                                                                    29.6                                                                                                                          77.0%             77.4%            74.4%          74.6%
                                       26.3                                                                                                                           71.8%                                                                                       95.1%
          20.2

                                                                                                                             30.2
                                                                                                 29.7
                                                                                                                            [36%]
          23.6                         25.5                         26.8

                                                                                                  8.0                   8.2 [10%]                                     14.0%                       13.9%             15.0%            13.9%          13.9%
           5.1                          2.5                          3.0
         FY08                         FY09                         FY10                         FY11                      Q1FY12                                   FY08               FY09              FY10             FY11           Q1FY12
           Term funding                        Individuals                     Biz enterprises                       Government                               Shareholders' 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 and FIs

                                                                          Lengthening debt capital & term funding profile
7.0     RM'bil                                                                                                                                                                                                        Funded assets financed by equity,
6.0                                                                                                                                                                                                                   customer deposits and longer-term debt:
5.0                               Issuance                                                                                                                             Maturity                                       •    Q1FY12 = 95.1%
                                                                                                                                                                                                                      •    FY11 = 95.2%
4.0
                                                                                                                                                                                                                      •    FY10 = 93.9%
3.0
                                                                                                                                                                                                                      •    FY09 = 91.6%
2.0                                                                                                                                                                                                                   •    FY08 = 87.8%*
1.0

 -                                                                                                                                                                                                                    Issued RM2.92 bil Senior Notes (RM7 bil
           FY06           FY07           FY08            FY09         FY10     FY11                   FY12    FY13                   FY14     FY15      FY16                      FY17           FY18     FY19+       program) and RM550 mil Senior Sukuk
                                                                    Debt Capital                      Term Funding                      Loans sold to Cagamas                                                         (RM3 bil program) since early 2010

      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
      * Based on AmIslamic Bank Bhd maturity profile


                                                                                                                                                                                   AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   15
Delivering higher shareholders’ returns

            ROE                                                            ROA
                                                 ROE expected to
                                                 normalise to
                                                 MTA guidance




                                                                                                                               1.69%
                                                                                                                 1.39%
                                               17.0%                                                1.13%
                                      13.6%                            1.02%         1.04%
  11.5%         11.7%        11.5%




   FY08           FY09       FY10     FY11     Q1FY12                   FY08             FY09          FY10        FY11        Q1FY12



     EPS, Basic                                                    Dividend, Gross
     Sen/Share                                                       Sen/Share

                                                                                                                                  40%

                                                                                                               28%

                                                                          18%                19%
                                        44.7
                               34.7     sen                                                                                      18.0
    28.2              31.6                                                                                                       sen
                      sen      sen                                                                             10.5
    sen                                                                                      8.0
                                                 14.8 *                   6.0                                  sen
                                                 sen                                         sen
                                                                          sen

   * Not annualised
                                                                                  Total Dividend            Dividend Payout Ratio
   FY08           FY09       FY10     FY11     Q1FY12                     FY08               FY09               FY10              FY11


                                                                   AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   16
Capital levels positioned for Basel III and target payouts

 Capital adequacy :                       Pro-forma AmBank Group Banking Entities*


                                                                                                                                                                                        Estimated capital ratios^                                       Risk Appetite
                                                                                                                                                                                (include Q1FY12 unappropriated profits)                              Framework Targets

     15.2%                                    15.8%
                                                                                              14.4%
                                                                                                                                           13.7%                                                     RWCAR: 14.1%                                        14% ± 2%

      9.7%                                     10.3%                                          10.2%                                          9.7%
                                                                                                                                                                                                   Tier 1 CAR: 10.1%                                    10% ± 1.5%


      7.7%                                     8.1%                                            8.0%                                         7.6%
                                                                                                                                                                                                   CET 1 Ratio: 8.0 %                                    8% ± 1%



     FY2009                                  FY2010                                          FY2011                                     Q1FY2012


              Fee Income
              CET 1 Ratio                             Tier 1 CAR                     RWCAR

                                                                                                                                                                                                  Capital management plan :
                                                                                                                                                                                                  1. Optimise capital profile & buffer
 Capital adequacy by Legal Entities1
                                                                                                    Tier 1 CAR                           RWCAR                                                    2. Increase scenario modeling
                                                                                                                                                                                                  3. Streamline corporate structure
   AmBank (M) Berhad                                                                                      8.8%                            13.4%                                                      (e.g. AmIslamic)
   AmInvestment Bank Berhad                                                                             25.2%                             25.2%                                                   4. Develop dynamic dividend policy
                                                                                                                                                                                                  5. Proactively manage Basel III
   AmIslamic Bank Berhad                                                                                  8.0%                            12.5%                                                      requirements


                * Banking entities include AmBank (M) Berhad Group, AmInvestment Bank Group and AmIslamic Bank   ^Estimated capital ratios include Q1FY12 unappropriated profits of AmBank (M) Bhd Group, AmIslamic Bank & AmInvestment Bank Group
                1: Q1FY2012 (after deducting proposed dividend)

                                                                                                                                                     AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012                                17
Contents




           1.   Executive summary

           2.   Q1FY2012 Group Financial Performance

           3.   Strategy & Outlook

           4.   Divisional Performance

           5.   Supplementary Information




                           AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   18
                         Our Aspirations…

             Medium Term Aspiration
                                                          “To become Malaysia’s Preferred Banking Group with International Connectivity”
                    (MTA)


                                                                                                                                           Well diversified & Sustainable
                           As measured by                 Customer Satisfaction             Sound Financial Performance
                                                                                                                                                      Growth



                                    RETAIL*                        BUSINESS*                         TRANSACTION*                                            CIB*

                              Develop a liability-led      Grow diversified & profitable     Become Top 5 Banking Service                  Deliver innovative and quality
                             business, grow assets in      assets, increase deposits, fee    Provider in Malaysia by FY2016                 solutions, increase ‘share of
                          targeted segments & expand      based business & international         with 10% market share                     wallet’, target high-profile’ and
DIVISIONAL ASPIRATIONS




                              Wealth Management             trade finance leveraging on                                                    high value clients and leverage
                                                                        ANZ                                                                 ANZ for x-border businesses




                                 INVESTMENT*                       MARKETS*                        LIFE ASSURANCE*                               GENERAL INSURANCE

                              Deliver comprehensive       Deliver substantive, integrated    Become the top life insurer for               Provide insurance solutions to
                             solutions, lead in capital    and client-led business with            service; an industry                     our customers and business
                          markets, funds management,           full suite of FX, Rates,        benchmark for TCF, strong                      partners that meet their
                           stock broking and enhance      Commodities and FI offerings       infrastructure, sufficient scale               insurance needs and exceed
                              domestic and overseas          with ANZ collaborations           to be relevant and credible                   their service expectations
                               distribution via ANZ                                            whilst maintaining margins
                                                                                                     and cash profile

                                                              * Conventional & Islamic          AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   19
    Business transformation and growth plans


         GROWTH LEVERS                                         STRATEGIC INITIATIVES

1
                              • Leverage ANZ’s international connectivity via biz development initiatives
     LEVERAGE INTERNATIONAL
                              • Expand product and service offerings for cross-border opportunities
          CONNECTIVITY        • Broaden regional clientele base & widen distribution network

2                             • Develop customer centric business models
                              • Enhance wealth management business
                              • Carve out ‘Transaction Banking’ as a division focusing on cash management &
     INVEST TO GROW INCOME      international trade
                              • Develop new family Takaful business with FL
                              • Introduce new products and enhance relationship teams

3                             •   Develop products to fulfill customer segment & life cycle needs
       INCREASE CUSTOMER      •   Enhance distribution footprints for easier accessibility
         SHARE OF WALLET      •   Up ante in cross-selling efforts across Group
                              •   Enhance core banking systems

4
                              • Target ETP projects in NKEA sectors
        CAPITALISE ON ETP     • Key focus areas – loans, bridging finance and advisory services for PDS issuances /
                                capital market activities and private pension industry

5
                              • Invest in human capital development
      UPGRADE CAPABILITY &
                              • Enhance account planning system for business growth
         PRODUCTIVITY         • Consolidate operations to improve efficiencies

                                                               AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   20
Maintaining profit targets for FY2012

                         Profitable growth and rebalancing
     FY2012              Diversification and new business development
    PRIORITIES           Non-interest income and deposit growth
                         Customer centricity

                     •   Accelerate CASA & deposit growth, profitable asset growth and lower credit cost over time
     RETAIL*         •   Diversify retail income, continue to invest for medium term outcomes
                     •   Forecasting increase profit contribution for FY2012 due to lower impairments
                     •   Income growth arising from larger asset base and growth in non-interest income
    BUSINESS*        •   Higher deposit growth and increase cross-selling
                     •   Forecasting increase profit contribution in FY2012 underpinned by rising incomes

                     •   Income growth from non-interest income and larger asset base
   CORPORATE &
  INSTITUTIONAL*     •   Focus on cross-sell and grow deposits, increase regional business via collaboration with ANZ
                     •   Anticipating increase in profit contribution in FY2012 underpinned by rising incomes

                     •   Leverage on upturn in capital market and new initiatives
  INVESTMENT*        •   Increase regional business through closer collaboration with ANZ
                     •   Anticipating better profits for FY2012 driven by higher fee & capital market activities

                     •   Increase product offerings, higher contributions from FX and derivatives
    MARKETS*         •   Expecting strong profit growth in FY2012 underpinned by capital market and trading activities

       LIFE          •   Launch new products, improve efficiency and governance, and leverage strategic partnership with FL
   ASSURANCE*        •   Expecting flat profit contribution for FY2012 post restructuring of business operating model


     GENERAL         •   Higher contributions from new products & increase in share of wallet from retail & biz customers
    INSURANCE        •   Expecting good growth in premium and profits for FY2012


                              * Conventional & Islamic            AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   21
 Medium Term Aspiration (MTA) and estimates

                    Actual


                              FY07                                  FY08      FY09         FY10                FY11                Q1 FY12
                                                                                                                                                                 MTA
                                                                                                                                                            FY2012 - FY2014



                       - RM 282.5                            RM 668.5       RM 860.8    RM 1,008.6          RM 1,342.8            RM 441.5                        14 – 16%
   PATMI*
                           mil                                 mil            mil          mil                 mil                  mil                            CAGR



     ROE                    - 5.8%                                  11.5%    11.7%        11.5%                13.6%                17.0%                         14 – 16%
                                                                                                                                                                            Investing for
                                                                                                                                                                            growth over
                                                                                                                                                                            medium term

     CTI                    38.8%                                   40.2%    43.3%        42.0%                39.9%                38.5%                           ≤ 42%



Net NPL ratio /              6.2%                                   3.7%     2.6%         1.5% /
    Gross                                                                                  3.8%                 3.3%                2.96%                         2 – 2.75%
impaired loans


  Dividend:              5.0 sen /                            6.0 sen /     8.0 sen /   10.5 sen /           18.0 sen /
    Gross                  share                                share         share       share*               share                    -                         40 – 50%
   Payout                                                                                                                                                          Payout
                       (loss year)                                  18.3%    19.0%        28.1%                 40%



                  *PATMI: profit after tax and minority interests



                                                                                                     AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   22
Outlook & Priorities
                       OUTLOOK

                       • Strength in private investment & private consumption and
                         prospective ETP gains to sustain Malaysia’s economic growth (GDP
                         CY2011e: circa 5%1 )
                       • Domestic economy not immune to external headwinds with
                         continued weaker global outlook
                       • Monetary policy remains accommodative, OPR @ 3% & SRR @ 4%
                         today, with potential for further tightening
                       • Banking sector set to benefit from ETP & CMP 2 over time, more
                         lending & debt market activities, private sector involvement & robust
                         domestic consumption etc.
                       • Irrational pricing in selected segments, a concern


                       PRIORITIES

                       •   Profitable growth and rebalancing
                       •   Diversification and new business development
                       •   Non-interest income and deposit growth
                       •   Customer centricity




                                                                                                           1.   In-house view




                                    AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012        23
Contents




           1.   Executive summary

           2.   Q1FY2012 Group Financial Performance

           3.   Strategy & Outlook

           4.   Divisional Performance

           5.   Supplementary Information




                           AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   24
Retail Banking: Improved asset quality main contributor to higher profits


 Develop a liability-led                                                        Income                  Expenses                  PBP                    PAT

 business, grow assets in
                                            Composition to Group                 40.3%                    45.6%                  37.1%                   33.1%
 targeted segments and
 expand Wealth Management

                                                                                         Q1FY12 vs
                                       RM'mil                     Q1FY11     Q1FY12       Q1FY11
                                                                                                              Income – focus on profitable & viable
 Income                                                            448.8     446.9       -0.4%                segments and pricing for risk
 Expenses                                                          174.6     194.4       +11.3%
                                                                                                              Irrational pricing impeding loans growth
 PBP                                                               274.2     252.5       -7.9%
 Impairments                                                        98.0      51.2       -47.8%               Expenses – expanding customer touch-
                                                                                                              points, investing in technology & human
 PBT                                                               176.2     201.2       +14.2%
                                                                                                              capital
 PAT                                                               132.2     150.9       +14.1%
                                                                                                              Lower impairments driving higher profits
 Gross Loans / Financing                                         44,423.5 45,337.1       +2.1%
                                                                                                              Continued strong CASA growth
 Net Loans / Financing                                           43,151.4 44,018.7       +2.0%
 Gross Impaired Loans                           2.84%              1,358.6   1,287.9     -5.2%
 Customer Deposits                                               31,486.3 34,690.9       +10.2%
 CASA Deposits                                                     6,792.5   8,025.6     +18.2%

ROA                                                                1.21%     1.36%       +0.15%
CTI                                                                38.9%     43.5%       +4.6%
Allowance Coverage                                                 93.6%     102.4%      +8.8%



   Q1FY11 results   Positive growth in Q1FY12       Contraction in Q1FY12

                                                                                           AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   25
Business Banking: Strong income growth

 Grow diversified & profitable                                                  Income                 Expenses                   PBP                           PAT
 assets, increase deposits, fee
 based business &                           Composition to Group                 13.1%                  6.6%                      17.2%                        18.5%

 international trade finance
 leveraging on ANZ

                                                                                            Q1FY12 vs
                                     RM'mil                          Q1FY11     Q1FY12       Q1FY11
Income                                                                109.9      145.0      +31.9%                Higher profits backed by strong net
Expenses                                                               24.8       28.0      +12.9%                interest and fee income growth, and
PBP                                                                    85.1      117.0      +37.5%                better recoveries
Impairments                                                            8.7        4.5       -48.3%                Expenses – mainly from increase in staff
PBT                                                                    76.4      112.5      +47.3%                cost
PAT                                                                    57.3       84.5      +47.5%
                                                                                                                  Good deposits and CASA growth,
Gross Loans / Financing                                              11,714.7   15,030.2    +28.3%                leveraging on better relationship building
Net Loans / Financing                                                11,547.8   14,739.4    +27.6%
                                                                                                                                Income contribution
Gross Impaired Loans                            1.59%                  123.6      238.8     +93.2%
Customer Deposits                                                     6,008.3    6,614.5    +10.1%
CASA Deposits                                                         1,292.8    1,417.2    +9.6%                  Trade
                                                                                                                Services, 25%                 Cash
ROA                                                                   2.03%      2.34%      +0.31%                                        Management
                                                                                                                                          & others, 2%
CTI                                                                   22.6%      19.3%       -3.3%
Allowance Coverage                                                   135.1%     121.8%      -13.3%

                                                                                                                                                          Lending &
                                                                                                                                                         deposits, 74%




   Q1FY11 results   Positive growth in Q1FY12       Contraction in Q1FY12

                                                                                           AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   26
Corporate & Institutional Banking: Good income & deposits growth

 Deliver innovative and quality                                                       Income               Expenses                     PBP                       PAT
 solutions, increase ‘share of
 wallet’, target high-profile and                  Composition to Group
                                                                                        9.0%                  7.0%                      10.3%                     15.7%

 high-value clients and leverage
 ANZ for x-border businesses


                                                                                                 Q1FY12 vs             Diversified loans portfolio – good support
                                       RM'mil                             Q1FY11     Q1FY12       Q1FY11               for income growth

Income                                                                      82.4      100.1     +21.5%                 Higher income contributions from lending,
Expenses                                                                    25.0       29.7     +18.8%                 International Business & Asset
                                                                                                                       Management
PBP                                                                         57.5       70.4     +22.4%
Impairments                                                                 (9.2)     (22.5)    +>100.0%               Impairments benefitted from lower
PBT                                                                         66.6       93.0     +39.6%                 collective impairment

PAT                                                                         50.8       71.5     +40.7%                                Income contribution

Gross Loans / Financing                                                   10,535.4   13,588.4   +29.0%
Net Loans / Financing                                                     10,456.3   13,511.0   +29.2%                    Int. Biz,
Customer Deposits                                                         30,697.3   35,484.1   +15.6%                      19%                   Asset
                                                                                                                                                  Mgmt,
ROA                                                                        1.89%      2.04%      +0.2%                                             6%
CTI                                                                        30.3%      29.6%      -0.7%
Ave Assets Management                                                     1,403.5    1,501.5     +7.0%
                                                                                                                                                               Lending &
                                                                                                                                                               deposits,
                                                                                                                                                                 75%


                                                                                                                     * Services include : large corporate lending& deposits,
                                                                                                                       financial institutions group, offshore banking, international
                                                                                                                       business, private equity, REITs and loan syndication
      Q1FY11 results   Positive growth in Q1FY12         Contraction in Q1FY12

                                                                                                  AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   27
Investment Banking: Strong profit growth leveraging on capital & equity markets
  Deliver comprehensive                                                        Income                Expenses                               PBP                                   PAT
  solutions, lead in capital
  markets, funds management,                   Composition to Group             9.9%                   11.8%                                 8.6%                                 9.7%

  stock broking and enhance
  domestic & overseas
  distribution via ANZ
                                                                                         Q1FY12 vs
                                     RM'mil                      Q1FY11       Q1FY12      Q1FY11               • Better performance leveraging from pick-
                                                                                                                 ups in capital and equity market
Income                                                                75.1     109.1     +45.3%
                                                                                                                 conditions
Expenses                                                              39.3      50.5     +28.5%
PBP                                                                   35.8      58.6     +63.7%                • Good and diversified contributions from all
                                                                                                                 divisions
Impairments                                                           0.4       (0.5)    ->100.0%
PBT                                                                   35.4      59.1     +66.9%                • Expenses – higher staff cost & incentives
                                                                                                                 linked to better financial performance
PAT                                                                   26.3      44.2     +68.1%
CTI                                                               52.4%        46.3%      -6.1%                                      Income contribution
                             1                                                                                                          Private
Ave Assets Management                                           23,529.3      29,933.9   +27.2%
                                                                                                                                        Banking,
                                                                                                                                          6%
Ave Volume / Contract Traded (RM'mil/month)                                                                                                                          Debt Cap
                                                                                                                                                                      Mrkt,
       Bursa M'sia                                              59,429.3      72,791.5   +22.5%                                                                        17%

       Future KL index                                            367.3        384.9      +4.8%                              Fund                                               Corporate
       IB Broking                                                4,707.1      4,464.5     -5.2%                              Mgmt,                                               Finance,
                                                                                                                              22%                                                  10%
       AmFuture                                                       75.5      90.0     +19.2%
Market Share as at:
                                                                                                                                        Broking &
       IB Broking                                                 7.8%         6.1%       -1.7%                                          Futures,                    Equity,
                                                                                                                                           22%                        22%
       AmFuture                                                   20.3%        22.6%      +2.3%

                                                                                                                 1        Including AmInvestment Management, AmInvestment Services, AmIslamic Funds Management & private banking
                                                                                                                 Source : Malaysia Association of Asset Management & Lipper Hindsight

      Q1FY11 results   Positive growth in Q1FY12      Contraction in Q1FY12

                                                                                             AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012                                              28
Markets: Well diversified income growth

 Deliver substantive, integrated                                                        Income             Expenses                  PBP                    PAT
 and client-led business with
 full-suite of FX, Rates,                          Composition to Group                  11.8%               4.1%                   16.6%                   18.7%

 Commodities and FI offerings
 with ANZ collaborations

                                                                                           Q1FY12 vs
                                     RM'mil                   Q1FY11       Q1FY12           Q1FY11
                                                                                                                 Higher contributions from fixed income
Income                                                          89.9            130.7     +45.4%                 and FX

Expenses                                                        13.1            17.4      +32.8%                 Expenses reflect continuous investment in
                                                                                                                 FX, rates, derivatives & commodities
PBP                                                             76.8            113.3     +47.5%
                                                                                                                 establishment
Impairments                                                      (7.3)          (0.2)     -97.3%
                                                                                                                              Income contribution
PBT                                                             84.1            113.5     +35.0%
                                                                                                                          Derivatives,
PAT                                                             63.3            85.2      +34.6%                              7%


CTI                                                            14.6%        13.3%          -1.3%                                            Others, 4%
                                                                                                                  Foreign
ROA                                                            3.18%        5.87%          +2.7%                 exchange,
                                                                                                                   18%
PAT : Fx and Derivatives                                         7.4            17.4     +>100%

Total Group:                                                                                                                                             Fixed Income,
                                                                                                                                                             71%
Financial assets HFT                                          2,737.9       6,554.5      +>100%
Financial investments
                                                              7,593.7       4,423.0       -41.8%
AFS
Financial investments
                                                               199.5            153.4     -23.1%
HTM

      Q1FY11 results   Positive growth in Q1FY12        Contraction in Q1FY12

                                                                                                   AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   29
Life Assurance: Increasing support to Bancassurance and better performing agencies


To be the top life insurer preferred
for service; an industry benchmark                                                                 Income                       PAT

for TCF, strong infrastructure,                          Composition to Group                        2.0%                        3.7%
sufficient scale to be relevant and
credible but whilst maintaining
margins and cash profile


                                                                                     Q1FY12 vs
                                    RM'mil                 Q1FY11 Q1FY12              Q1FY11

Income                                                        23.8            22.0   -7.6%
                                                                                                            Strategic focus on

PAT                                                           23.7            16.7   -29.5%                     Business growth initiatives centered
                                                                                                                on Bancassurance
Life Assurance
                                                            2,226.1      2,584.7     +16.1%                     Providing enhanced support to better
fund assets                                                                                                     performing agency force

CAR ratio                                                   232.7%       214.7%      -18.0%                     Improving compliance and
                                                                                                                infrastructure platforms
Gross written premium                                        129.0        133.9      +3.8%




* Life assurance shareholders’ fund accounts


    Q1FY11 results        Positive growth in Q1FY12   Contraction in Q1FY12

                                                                                                 AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   30
General Insurance: Higher income


 To provide insurance solutions                                                 Income              Expenses                 PBP                    PAT

 to our customers and business
                                               Composition to Group               4.7%                 5.4%                  4.2%                   4.9%
 partners that meet their
 insurance needs and exceed
 their service expectations

                                                                                          Q1FY12 vs
                                    RM'mil                       Q1FY11       Q1FY12       Q1FY11

Income                                                                42.6     52.0      +22.1%
Expenses                                                              20.7     23.1      +11.6%
PBP                                                                   21.9     28.9      +32.0%
Impairments                                                           -         0.5      +>100.0%               Higher income - better underwriting
                                                                                                                profits and lower claim expenses
PBT                                                                   21.9     28.4      +29.7%
                                                                                                                Higher expenses – higher staff cost and
PAT                                                                   12.8     22.2      +73.4%                 continue investment in technology &
CTI                                                               48.6%       44.4%       -4.2%                 operations to improve efficiency & service
                                                                                                                delivery
General Insurance fund
                                                                 1,041.5      1,177.3    +13.0%
assets
Claim ratio                                                       67.5%       66.3%       -1.2%
Management expense
                                                                  15.2%       15.4%       +0.2%
/ earned premium




      Q1FY11 results   Positive growth in Q1FY12      Contraction in Q1FY12

                                                                                           AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   31
Group Operating Segments


      Enablement functions                                                         Income                         Expenses                 PBP                   PAT

      governing and supporting
                                               Composition to Group                     9.2%                        19.5%                  2.8%                  -4.2%
      delivery of improving
      divisional performances



                                                                                               Q1FY12 vs
                                      RM'mil                  Q1FY11          Q1FY12            Q1FY11

Income                                                          117.3         101.7            -13.3%
                                                                                                                    Income growth impacted by higher
Expenses                                                         83.4          83.0            -0.5%                funding cost (e.g. SRR), partly offset by
                                                                                                                    higher recoveries
PBP                                                              33.9          18.7            -44.8%
                                                                                                                    Prudently accelerating provisions on
Allowances                                                       1.8           37.9       +>100.0%                  specific accounts
PBT                                                              32.1          (19.2)      ->100.0%
PAT                                                              15.3          (19.3)      ->100.0%
PATMI                                                            1.9           (33.7)      ->100.0%




      Q1FY11 results   Positive growth in Q1FY12      Contraction in Q1FY12

                                                                                                        AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   32
Transaction Banking*: Strong profits & deposits growth

  To become top 5 Banking                                                          Income                Expenses                       PBP                         PAT

  Service Provider in Malaysia
                                               Composition to Group                 5.3%                  1.8%                         7.5%                         9.2%
  by FY2016 with 10% market
  share



                                                                                             Q1FY12 vs              Income – focus on trade finance services &
                                                                                                                    cash management
                                      RM'mil                          Q1FY11     Q1FY12       Q1FY11
                                                                                                                    Impairments benefitted from bad debts
Income                                                                  47.4       58.8     +24.1%
                                                                                                                    recovered and lower collective impairment
Expenses                                                                7.4        7.6       +2.7%
PBP                                                                     40.0       51.2     +28.0%
Impairments                                                             1.5        (5.0)    ->100.0%                               Income contribution
PBT                                                                     38.6       56.2     +45.6%
PAT                                                                     28.9       42.1     +45.7%

Gross Loans / Financing                                               3,578.5    4,246.4    +18.7%
                                                                                                                                       Cash Mgmt,
Trade Finance                                                         3,528.5    4,168.2    +18.1%                                        38%

Cash Management                                                       10,993.6   14,319.8   +30.3%
                                                                                                                                                                         Trade
CASA Deposits                                                         1,733.9    2,225.4    +28.3%                                                                      Services,
                                                                                                                                                                          62%

ROA                                                                    3.44%      4.09%     +0.65%
CTI                                                                    15.5%      13.0%      -2.5%

                                                                                                                    * Performances integrated to divisional outcomes.



      Q1FY11 results   Positive growth in Q1FY12      Contraction in Q1FY12

                                                                                             AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   33
Islamic Banking*: Good financing and deposits growth

 To become the Islamic Bank of                                                   Income               Expenses                    PBP                           PAT
 choice and ensure a high
 degree of value for our                       Composition to Group               17.2%                 16.8%                    17.4%                         12.9%
 customers, employees &
 stakeholders

                                                                                            Q1FY12 vs
                                        RM'mil                        Q1FY11     Q1FY12      Q1FY11
Income                                                                 194.2      190.0     -2.2%
Expenses                                                                76.5      71.7      -6.2%
PBP                                                                    117.7      118.2     +0.4%                 Higher impairment since mid-FY2011
                                                                                                                  due to structural changes associated
Impairments                                                             37.3      38.3      +2.5%
                                                                                                                  with COOP lending industry resulting in
PBT                                                                     80.4      80.0      -0.5%                 increased provisioning under FRS 139
                                                                                                                  methodology
PAT                                                                     59.3      58.7      -1.1%

Net Financing                                                         12,785.7   13,975.3   +9.3%
Gross Impaired Financing                    1.80%                      191.6      289.4     +51.1%
Customer Deposits                                                     13,287.3   15,757.8   +18.6%
CASA Deposits                                                         2,047.1    2,601.1    +27.1%

ROA                                                                    1.34%      1.20%     -0.14%
CTI                                                                    39.4%      37.8%     -1.6%
Allowance Coverage                                                    159.4%     178.7%     +19.3%                 * Performances integrated to divisional outcomes.



      Q1FY11 results   Positive growth in Q1FY12      Contraction in Q1FY12

                                                                                            AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   34
Contents




           1.   Executive summary

           2.   Q1FY2012 Group Financial Performance

           3.   Strategy & Outlook

           4.   Divisional Performance

           5.   Supplementary Information




                           AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   35
                                                                         Strategic                                        Governance &
Strategic Business Transformation: Good Progress                         Business
                                                                                                  High Priority
                                                                                                Growth Initiatives
                                                                                                                           Enablement
                                                                      Transformation                                        Functions




                     •   Set Group’s Medium Term Aspirations (MTA)
   12 months         •   Agreed Group’s transformation strategy, agenda and targets
    (FY 2008)        •   Realigned auto financing business towards profitable growth
                     •   Improved asset quality


                     •   Realigned growth towards profitable and viable segments
                     •   Realigned Markets Fixed Income business model
   24 months         •   Reset Mortgage business strategy and action plans
    (FY 2009)        •   Consolidated Group balance sheet activities within commercial bank
                     •   Split composite insurance license to General and Life


                     •   Deposits as profit centres across Group
   36 months         •   Realigned customer ownerships and focus
    (FY 2010)        •   Proactively strengthened capital and liquidity management
                     •   Repositioned balance sheet for rising interest rates



                     •   Completed structural realignment to improve target segment focus
   48 months         •   Develop customer centric retail business model - part of AmHorizon
    (FY 2011)        •   Implementing account plans for business customers to increase SOW
                     •   Expanding product offerings and build new capabilities (e.g. Markets)


                                                          AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   36
                                                                                                 High Priority             Governance &
High Priority Growth Initiatives: Implemented To-Date                    Strategic Business
                                                                          Transformation
                                                                                                   Growth                   Enablement
                                                                                                  Initiatives                Functions




   12 months         •   Created new profit centre based retail branch distribution model
    (FY 2008)        •   Setup ‘deposits’ as profit product across all divisions & grow CASA



                     •   Created a separate Corporate and Institutional Banking (CIB) Division
   24 months         •   New FX business in collaboration with ANZ
    (FY 2009)        •   Enhanced cash management offering via Gross Payroll system
                     •   FL brought in as new life strategic business partner


                     •   Accelerated growth from GLC, GLIC and MNC
   36 months         •   Build scale
                     •   New Rates business in collaboration with ANZ
    (FY 2010)
                     •   Distribution footprint expansion (particular focus on 7-11 ATM’s) &
                         alternative channels


                     •   Commenced leveraging ANZ for International connectivity
   48 months         •   Strengthen wealth management biz and develop new strategies
    (FY 2011)        •   Enhancing international trade and cash management business
                     •   Develop new family Takaful business with FL


                                                           AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   37
Governance and Enablement Functions Streamlined:                                                                     Governance
                                                                      Strategic Business        High Priority           and
Supports Better Decision Making                                        Transformation         Growth Initiatives     Enablement
                                                                                                                      Functions



                   •    Privatised AmInvestment Bank as part of migration to universal banking
   12 months            platform for greater synergies
                   •    Consolidated / simplified governance committee structures
    (FY 2008)
                   •    Delivered line of business budgets and performance reporting
                   •    Created a Group PMO to prioritise and manage key strategic initiatives

                   •    Established Advance Risk Recognition Program (ARRP)
                   •    Strengthened risk disciplines via Group Risk Appetite Frameworks
   24 months       •    Separated ALCO, capital and balance sheet management from Markets
    (FY 2009)      •    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
   36 months            security indicators
                    •   Implemented FTP system aligned to balance sheet strategies
    (FY 2010)
                    •   Developed leadership bench-strength and succession planning
                    •   Implemented Operational Risk Incident Reporting system and Basel II capital
                        calculator


   48 months       •    Consolidating some Group Support into Centres of Excellence
                   •    Implementing Basel III, capital allocations and new ALM system
    (FY 2011)
                   •    Finalize vendor and commence core banking system replacement


                                                        AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   38
Risk Management: enhancing risk recognition skills and asset quality

     KEY AREAS                              ADVANCED RISK RECOGNITION PROGRAM INITIATIVES

                      •   A restructured independent Group Risk Management Department, headed by the Chief Risk Officer.
   GOVERNANCE         •   Executive Management and Board sub-committees were streamlined and charters modified to enhance overall
                          governance.
                      •   Established a model validation team to regularly review all material risk models within the Group.

                      •   Credit Risk Management:
                              Implemented new PD scorecards for retail (3rd generation) and corporate. EAD and LGD models for both retail &
                              corporate. New behavioural scorecards being developed for retail customers.
                              New financial spreadsheet tool enabling detailed financial projections and industry benchmarking.
                              Enhanced pricing models taking into account risk factors (risk based pricing).
                              New Security Indicator models developed for corporate customers.
 UPGRADING RISK               New model execution platform to enable automated provisioning and stress testing of Retail and Corporate
 INFRASTRUCTURE               exposures.
                      •   Market Risk Management:
                              Implemented FX and derivatives front end system and new markets (FX, interest rates and equity) rates/price
                              validation system.
                              FX & derivative limit monitoring and management system and VaR (FX, derivatives, equities) to be rolled out.
                              new Funds Transfer Pricing Model used to allocate funding costs.
                              new Asset and Liability Management system to enhance duration risk mismatches.
                      •   Operational Risk Management:
                              new incident reporting system for collecting, analyzing and estimating capital requirements.

   RISK APPETITE      •   Fine tune of risk appetite settings, clearly articulating risk / reward appetite.
STRATEGY, EXECUTION   •   Risk /reward supported by comprehensive asset writing & business strategies for each business unit.
   & MONITORING       •   Risk elements include - country, industry and customer single names limits, general loan underwriting standards, capital
    FRAMEWORK             allocation to business units and targeted returns.


                      •   Established a dedicated unit i.e. “Balance Sheet & Capital Management” reports to the Group Chief Financial Officer and
FUNDING & LIQUIDITY       advises the Group Asset & Liability Committee with regards to Funding, Liquidity and Capital strategy options.
 RISK MANAGEMENT      •   Strong improvements in: retail deposits growth; liability structure incorporating raising term wholesale funding and asset
                          and liability duration mismatches.

                      •   Material improvement in net NPL / gross impaired assets, provisioning charges and loan loss coverage ratio over the past
ASSET QUALITY AND         four years.
    PORTFOLIO         •   Further diversification in the loan portfolio.
 DIVERSIFICATION      •   Portfolio diversification strategy to grow certain selected portfolios quicker than others (eg: well rated counterparties in
                          CIB and Business Banking).

                                                                        AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   39
   Loans by Economic Purpose: AmBank Group vis-à-vis Industry
     AmBank Group Loans Growth (including Islamic financing sold to Cagamas) by Economic Purpose*
RM’bil                                                                                                                                                                               Jun-10           Jun-11

composition : 33.8%                        16.4%    2.2%        3.2%           6.7%          2.8%         1.5%          0.0%         2.8%        22.9%        7.6%          55.7%        44.3%
                                                                                                                                                                                                          10.0%
                                                                                                                                                                                                         75.4


                                                                                                                                                                               1.5%           28.9%

                         1.4%               5.7%     0.9%        28.0%          25.0%         3.1%         16.2%         25.8%         24.2%        28.2%         73.1%
                                                                                                                                                                             42.0
                                                                                                                                                                                           33.4          68.5
                     25.4
                                                                                                                                                  17.3                        42.6
                                          12.4      1.7         2.4
                       25.8                                                    5.0         2.1           1.1                          2.1                                                  25.9
                                                                                                                      0.002                                      5.8
                                          11.7      1.7         3.4            4.0         2.0           1.4                          1.7         13.5
                                                                                                                      0.003                                      3.3
                  Purchase of Purchase of Credit Cards      Personal Use   Purchase of   Purchase of   Fixed Assets   Consumer    Construction   Working    Other purpose Retail Loans   Business &   Total loans
                   Transport Res Properties                                  Non-Res      Securities                   Durables                  Capital                                 Corporate
                    Vehicles                                                Properties                                                                                                     Loans

     * Based on BNM classification




     Industry Loans Growth by Economic Purpose
RM’bil                                                                                                                                                                               Jun-10           Jun-11

composition : 14.6%                         26.6%    3.2%        4.9%          10.5%         4.6%          1.0%          0.0%         2.5%       25.9%          6.3%        49.3%         50.7%
                                                                                                                                                                                                         13.5%

                                                                                                                                                                                                        947.7
                                                                                                                                                                              11.7%         15.3%


                       8.4%               13.1%     11.2%       14.2%         21.9%         19.1%          0.4%         14.2%         21.3%        10.7%         23.5%       467.2         480.5
                                                                                                                                                                                                        834.9
                                          251.8                                                                                                  245.5
                     138.4                                     46.2           99.6          43.2                       0.08          23.5                       59.7         418.3         416.6
                                                    30.8                                                   9.0          0.1
                                          222.5                40.5                         36.3                       0.10          19.4        221.8          48.3
                     127.7                          27.7                      81.7                         9.0          0.1

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

         Source : BNM, internal reports
                                                                                                                          AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012      40
Deposits by Type : AmBank Group vis-à-vis Industry
  AmBank Group Deposits Growth by Type

     RM’bil
                                                                                                                                                    AmBank Group Deposits
                                                                                       Jun'10                 Jun'11                                    Composition

                                                                                                                                                                  5.8%
                                      10.8%              26.8%         19.3%                 11.2%                     12.2                                              7.5%


                                                                                                                  75.7
                                                                                         65.6


                                                                                                                   67.4                                       86.7%
                                                                                          59.0
                                                                      10.0                                                                                  Savings
                                    4.4                 5.7                                                                                                 Current Account
                                    4.0                 4.5           8.4                                                                                   Fixed Deposits
                              Savings           Current Account     CASA           Fixed Deposits          Core Deposits



  Industry Deposits Growth by Type
                                                                                                       Jun '10         Jun '11
     RM’bil
                                                                                                                                                    Industry Deposits Composition
                                        10.5%             14.5%            13.0%           10.8%                    11.6%

                                                                                                                                                                    13.1%
                                                                                                                 837.2

                                                                                                                                                                   23.6%
                                                                                          530.2

                                                                       307.0                                     750.3                                         63.3%
                                                         197.4                            478.6
                                      109.6                            271.7                                                                                 Savings
                                                         172.5                                                                                               Current Account
                                       99.2                                                                                                                  Fixed Deposits
                                   Savings        Current Account     CASA          Fixed Deposits          Core Deposits
  Source : BNM, internal reports
                                                                                                  AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   41
Malaysia’s GDP growth driven by ETP and steady domestic demand
                    Malaysia’s GDP growth vs. ASEAN countries                                                                           Malaysia average lending rate vs OPR & BLR
       %
15.0                                                                                   14.5

13.0                                                                                                                    15%

11.0                                                                                                                           12.13%

           8.7                                                                          7.8
 9.0       8.2                                                                           7.3                            10%
                                                                                                                              11.63%
                                                                                        7.2              6.2
 7.0                                                   6.2                                                                                                                                                     6.54%
           5.8                                          6                      5.3       6.8             5.2                                                                                           6.02%
           5.5                                         4.7                     4.5                                             8.46%                                                          5.62%
 5.0       5.3                                                                           6.1             5.0 Malaysia
                                                       3.7                                               5              5%
           5.1                                                                                                                                                                             5.08%
                                                       2.5                                               4                                                                                            5.02% 5.07%
 3.0                                                   1.5
                                                                               1.1                                                                                                                             2.96%
 1.0                                                                                                                                                                                         2.12%    2.45%
                                                                               -0.8                                     0%
                                                                               -1.7
-1.0             2006          2007                   2008                     -2.3
                                                                               2009    2010e         2011f

-3.0
       Vietnam          Indonesia                Malaysia                Philippines     Singapore           Thailand          Average lending rate (commercial banks)       Average OPR              Average BLR



                                                                                                                                            Malaysia household debt / GDP vs.
   Malaysia : Key statistics                                                   2010             2011e                                   household loans approved & impaired loans
                                                                                                                          RM’bil
   GDP                                                                         7.2%              5.0%
                                                                                                                                                                         76.0%         75.9%
   Inflation                                                                   1.7%            3.0 – 3.5%                      68.8%         66.9%          63.7%

   OPR                                                                         2.75%             3.00%                         37.0%          37.5%          36.8%        31.0%         33.1%

   Fiscal deficit                                                              5.6%              5.6%                                                                                  184.1
                                                                                                                                                             143.1        159.2
                                                                                                                                             117.1
   Exchange rate (RM vs USD)                                                    3.09             2.97                           92.0                                                                      103.0

   Unemployment rate                                                           3.2%              3.2%                           23.6          19.1           16.3         13.3             11.2               10.2

   SRR                                                                         1.0%              4.0%                         2006          2007           2008          2009        2010               June-11

                                                                                                                                        Household Impaired Loans            Household Loan Approved
                                                                                                                                        Gross National Savings              Household Debt/GDP
                        Sources : Bloomberg, BNM, in-house economic research                                              AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012         42
  Malaysia still poses attractive investment opportunities in ASEAN region




                                                       Malaysia           Thailand         Singapore               Indonesia                   Philippines                       Vietnam

                                             2010e             2011f   2010e   2011f     2010e   2011f          2010e        2011f          2010e        2011f           2010e        2011f

National Savings
Rate,                                         33.10            33.23   30.65   30.62     46.04   46.35          33.38        34.34           20.11       18.66           34.29        32.36
as % of GDP

Real GDP Growth,
                                               7.15            5.00     7.80    3.96     14.47    5.16           6.11         6.20            7.33        4.95            6.78         6.26
% YoY

Industrial
Production Index,                              7.46              -     15.39         -   27.98     -             4.30           -               -            -               -             -
% YoY


Inflation                                      1.70            2.80     3.27    4.02      2.82    3.30           5.13         7.15            3.80        4.91            9.21        13.46



Central Bank Rate                              2.75            3.00     2.00    3.50      0.44    0.51           6.50         7.00            4.00        5.00            9.00             -



CPI                                         113.96 117.16              107.96 112.30     102.80 106.19         120.97 129.61                166.06 174.21                209.50 237.70



      Source: World bank, IMF and various central banks data


                                                                                                         AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   43
Economic Transformation Programme : Financial Services as 1 of 12 NKEAs


                                                                                                               Vision             • Evolve to serve needs of biz &
                                                                                                                                    consumers in high-income
                              Greater KL       Oil, Gas & Energy                                                                    economy
                                                                                                                                  • Increase depth, regional &
                                                                                                                                    global market shares in selected
                                                                                                                                    niches
                                                                            Palm Oil
           Agriculture                                                                                         Aspirations        • Strengthen core
                                Financial services sector EPP                                                                     • Serve needs of high-income
                                                                                                                                    population
                         1  Revitalise equity market                                                                              • Develop new growth sectors
                         2 Deepen & broaden bond markets                                                                          • Go on the offensive
 Communications          3 Transform development financial
                            institutions                                               Financial               Targets            • GNI contribution RM180bil
    Content &                                                                                                                       (additional 121b, 3x growth)
  Infrastructure
                         4 Create integrated payment eco-system                        Services                                   • New 275K jobs
                         5 Service high-income population                                                                           (56% >RM4K income per
                         6 Accelerate development of private                                                                        month)
                            pensions
                                                                                                               Challenges         • Lack of scale
                         7 Spur growth of wealth management
                                                                                                                                  • Lack of liquidity & diversity in
                         8 Kick-start & sustain asset management                                                                    capital markets
                            industry                                                                                              • Low levels of financial literacy
  Healthcare
                         9 Create regional champions                                       Tourism                                • Competition from regional
                         10 Create global Islamic finance hub                                                                       financial centres

                                                                                                               Enablers           • RM211bil cumulative funding in
                                                                                                                                    next 10 years
                                                                                                                                    (4% public sector contribution)
                                                                           Business                                               • Attractive biz environment for
          Education
                                                                                                                                    international & long-term
                                                                           Services
                                                                                                                                    capital
                                                                                                                                  • Talent
                                                  Improving                                                                       • Seamless regulatory
                             Wholesale            Electronics                                                                     • Tax competitiveness
                              & Retail            & Electrical                                                                    • Reputation

                                                                 GNI = gross national income                            EPP = Entry Point Projects
                                                                 NKEA = National Key Economic Activities                Source : www.pemandu.gov.my
                                                                                   AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   44
ETP : Propelling Malaysia towards becoming a high-income, developed nation by 2020
 Contents
 ETP: overview                                                                                            ETP roadmap
          GROSS NATIONAL
                                                                      JOBS                                                                                                        >RM48K GNI
             INCOME
                                                                                                                                                                               (USD15K) per capita
    • RM 48k GNI per capita                                • 31.6m population
    • RM 1.7 trillion GNI                                                                                RM23.7K GNI
                                                           • 3.3m additional jobs
    • 6% annual GDP growth                                                                                (USD6.7K)                   National Key Economic
                                                                                                          per capita                                                                 USD523bil
                                                                                                                                        Activities (NKEA)
                                                                                                                                                                    RM275b              RM
      ECONOMIC TRANSFORMATION                                                                                                 131 EPPs            RM359b            USD86b             1.7tril
                                                                PROGRAMME
                                                                                                             USD188bil          RM442b          USD112b
    • 12 NKEAs, 131 EPPs                                   • RM 1.4 trillion investment
    • 60 BOs                                                                                                                   USD138b
                                                           • 92% private investment                           RM661b
    • Transformational approach                            • 8% public investment
    • Private-sector led                                   • 73% DDI
                                                           • 27% FDI                                         2009 GNI        Entry Point         (BO) Biz         Other sector         2020
        TRANSFORMATIONAL                                                                                                    Projects (EPP)     opportunities        growth           GNI target
                                                                  INVESTMENT
             ACTIONS


                ETP execution gaining momentum
                       ROUND 1                      ROUND 2            ROUND 3             ROUND 4        ROUND 5           ROUND 6                                       TARGET              % OF
                                                                                                                                                       TO-DATE
                     (25 Oct 2010)               (30 Nov 2010)        (11 Jan 2011)       (8 Mar 2011)   (19 Apr 2011)    (13 Jun 2011)                                    (2020)            TARGET

Initiatives                                                                                                                                              87
                                9                           9                19                23             12                 15                                       131 EPPs           49.6
                                                                                                                                                      (65 EPPs)
Investment
(RM’bil)                      5.3                          8.3             67.0               14.8           11.2              63.4                      169.8              1, 400           12.1
GNI Impact
(RM’bil)                      0.1                          84.5            32.5               20.1           16.6              66.3                      220.2              1, 700           13.0

Jobs Creation             13, 100                      70, 500           52, 400            88, 354        74, 457           63, 531                  0.362 mil            3.3 mil           11.0

                 ETP : Economic Transformation Programme
                 Source : Pemandu

                                                                                                                 AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   45
EPP Round 6
                                                                                                 Investment              GNI Impact                Job
                                                   Project
                                                                                                 (RM’bil)                 (RM’bil)               Creation

                     • UCSI Group           Integrated premium health education                        0.85                   1.30                   2,000
       EDUCATION                            cluster
                     • Segi Education Group Upgrade ECCE standards, training &                         0.70                   0.90                  30,000
                                            workforce
                     • JEFI Aquatech        Establish JEFI Aquatech Centre & Farm,                     0.38                   9.50                   2,800
    AGRICULTUTRE                            plus Agro-Entrepreneur Programme
                     • Yanming Resources    Increase edible bird’s nest production                    0.005                   0.09                    103


     WHOLESALE &     • Unified Malaysia Sale Organise three main annual sale events                      -                    1.78                      -
       RETAIL

                     • SAVE                    To improve energy efficiency in Malaysia               0.05                    5.10                     -
 OIL, GAS & ENERGY   • RAPID                   Petronas crude oil refinery with capacity of           60.00                   45.00                 24, 000
                                               300,000 barrels per day
                     • Strategic Acquisition   Bureau Veritas acquired Scientige Sdn Bhd,              0.02                   0.11                    550
                                               company specialized in asset integrity
                                               management, risk & safety
 BUSINESS SERVICES   • AMD Global Services     New global services centre                              0.50                      -                    616

                     • Sime Darby              Sime Darby Medical Centre Ara Damansara                 0.28                      -                   1,539
      HEALTHCARE                               & Parkcity
                     • Biocon                  BioXcell, a custom-built biotechnology park             0.50                   1.97                    450
                                               & ecosystem
                     • Telepresence            Managed TelePresence Service to the                     0.01                      -                    153
              CCI      Exchange                public & private sectors
                     • Extending Regional      To lower the wholesale cost of                         0.006                      -                   1,220
                       Network                 international & domestic bandwith
                     • Swiflet Nest Tracking   Develop, test & implement new system &                  0.05                   0.56                    100
                                               standard for tracking swiftlet nests delivery
                                                                  TOTAL                           RM63.35 bil             RM66.31 bil            63, 531 jobs
 Source : Pemandu

                                                                             AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   46
Shareholding Structure
 As at 30 June 2011

    Amcorp Group Berhad                                               ANZ Funds Pty Ltd*                                                Employees Provident Fund Board                            Other Shareholders
          (16.8%)                                                          (23.8%)                                                                 (13.3%)                                             (46.1%)




                                                                                                        AMMB Holdings Berhad


     100%                                                 100%                                                           100%                                    100%                                           100%

    AMFB Holdings                                      AmIslamic Bank                                                     AmInvestment                          AmInvestment                                AMAB Holdings
      Berhad                                              Berhad                                                           Bank Berhad                          Group Berhad                                  Sdn Bhd


                                                                                                                                        AmLife Assurance              70%        (Friends Life Limited – 30%)

                                                                                                                                            Berhad
                      100%
                                                                                                                                                                      51%       (Insurance Australia Group Ltd – 49%)
                       AmBank (M) Berhad                                                                                              AmG Insurance Berhad


                                                                                                                                        AmFamily Takaful              70%       (Friends Life Limited – 30%)

                                                                                                                                            Berhad


 Foreign shareholding excluding ANZ

              Mar 09                                                                   Mar 10                                                         Mar 11                                               June 11
               28.4%                                                                    27.1%                                                          27.1%                                                   26.6%
                       *   ANZ Funds Pty Ltd : a wholly owned subsidiary of Australia and New Zealand Banking Group Limited (“ANZ”)


                                                                                                                                             AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   47
Strategic partnership with global partner, ANZ


                                                                                                                                                                         :
                                                                                                                                       Value Propositions to AmBank Group:

                                                                                                                                            Leadership & management
                                                                                                                                            2-way customer referrals
       Regional
                                                                                                                                            Joint business solutions
      Aspirations :
    Leading Super                                                                                                                           Products development
     Regional Bank                                                                                                                          Technical expertise
                                                                                                                                            Access to regional network &
                                                                                                                                            connectivity

Outperform & Transform
   Capturing value:                                                                ANZ has provided key resources and support to AmBank Group
   o to Asia,
                                                                                                        Director                      Director                              Director
   o within Asia                                                                    Board
                                                                                                      Alex Thursby              Dr. Robert John Edgar                     Mark Whelan
   o from Asia
                                                                               Senior          Deputy Group MD & Group             Chief Risk Officer              Chief Operations Officer
                                                                                                         CFO
     APEA sourced                                                            Management           Ashok Ramamurthy                   Andrew Kerr                       Ross Neil Foden
     revenue to drive 25                                                                         Chief General Manager,
     – 30% of Group                                                                                 Transformation,               Head, Market Risk                   Head, Governance &
                                                                                                                                                                         Provisioning
     profit                                                                  Management             Channels & Sales
                                                                                                                                                                   Senior General Manager,
                                                                                               Head, Systems Accounting*       Head, FX & Derivatives
                                                                                                                                                                     Transaction Banking
( ) – number of branches & representative offices in each country as at Jan 2011
* Support role

                                                                                                                          AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   48
Competitive positioning continues to strengthen

                             • Well diversified universal bank & # 5 largest banking group (market capitalization)
 Sound size and market
 position in key business    • # 4 retail bank, # 5 business and CIB lending, # 5 in Islamic Banking
 segments                    • # 2 in equity & equity-linked, # 3 in debt league, # 4 in funds under management, # 3 in Malaysia
                               RM Islamic Bonds

                             • Strong customer-focus, lead in customer satisfaction
 Recognized brand name
                             • Large retail and corporate client base provides high cross-selling potential
 & customer franchise
                             • Award-winning products and services

 Wide market reach and       • 190 branches, #4 largest ATM network (828), 403 ATMs @ 7/11 and 146 EBC’s
 multiple distribution       • eChannels: internet banking, mobile banking and 24 hour call centre
 channels                    • Pioneer in weekend banking concept and extended banking hours


Strategic partnership with   • ANZ value adds through leadership & management, product development, technical expertise and
global partner, ANZ            two way customer flows


                             • Experienced management team with key ANZ senior appointments and from other strategic
Experienced engagement         partner
team                         • Industry experts, international and domestic best practices
                             • Performance based culture, all levels


 Solid corporate structure   • Strong key shareholders, common aspirations
 & franchise value           • Improvement in stock valuation & upgrades in credit ratings


                                                                    AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   49
 Wide market reach and multiple distribution channels

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

 Number of commercial banking                                                                                                                                                                  Expand Electronic Banking Centre
 branches                                                                                                                                                                                      at 90% of branches
                                                                                                                                                      E-Channels &
   # 4 in no. of branches                                                                          Branch Banking                                                                              Maintain #1 provider of ATMs at 7
                                                                                                                                                     Contact Centre
   4 new branches in progress                                                                                                                                                                  Eleven stores
   3 AmIslamic branches                                                                                                                Multiple                                                Best in class contact centre
385 324 251 190 187 186 141                                                 91          90                                             channels                                                Innovative mobile & internet
                                                                                                                                                                                               banking services
 MBB CIMB PBB AMMB HLB RHB EON Affin
MBB CIMB PBB AMMB HLB RHB Cap EON AFFIN AFG                                                              Products &                                    Wealth
                                                                                                          Services                                   Management

                                                                                                                                                                                                Tapping affluent segment ;
                                                                                                                                                                  Total #                       priority banking setup (2 Centres)
    Comprehensive suite of retail                                                                    ATMs (# 4 in no. of ATMs)                                       828                         Multi campaigns / product
    banking products & services                                                                        ATMs at 7 Eleven                                              403                        launches for different segments
    Segment based solutions                                                                                                                                                                     Developing Wealth system to
                                                                                                     Electronic Banking Centers                                      146
                                                                                                                                                                                                enhance sales efficiency
    Accelerate payroll acquisition via
    AmBank@Work                                                                                      Assurance/Insurance offices*                                    50                         Grow sales force via additional
                                                                                                     AmInvestment offices                                            14                         Wealth Specialists

                                                                                                2,836 2,118
                                                                                                                      1,183 828                498   358    295    205     172
                                                                                                 MBB CIMB RHB AMMB PBB                               HLG   EON AFFIN AFG
   Source :   Company websites of peer banks / MEPS information                                   * AmLife & AmG branches and agency offices
   Note :     Peer groups as at June 2011; AmBank Group as at latest practicable date                                                                      AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   50
   Banking sector share price movement / target price and recommendations
                  Banking Sector Share Price Movement                                                                                                                                                                                                                          Upgraded ratings
                                                                                                                                                                                                                                                 Ratings                               FY2007                                   FY2011
                                                                                                    (Note: 18 May 2007 vs. 30 Jun 2011)
                  KLCI                  16.4%
                                                                                                                                                                                                                                                 RAM                                   A2/P1/Stable                             AA3/P1/Stable




                                                                                                                                                                                                                     AmBank (M)
                  MBB              -0.5%                                                                                                                                                                                                         Fitch                                 BBB-/F3/Stable                           BBB/F3/Stable

                                                                                                                                                                                                                                                 S&P                                   BBB-/A-3/Stable                          BBB/A-2/Stable
                  PBB                                    40.2%
                                                                                                                                                                                                                                                 Moody’s                               Baa2/P-3/Stable/D-                       Baa2/P-3/Stable/D
                 CIMB                                                55.3%                                                                                                                                                                       Capital Intelligence                  BBB-/A3/Stable                           BBB/A3/Stable

                                                                                                                                                                                                                                                 RAM                                   AA3/P1/Stable                            AA3/P1/Stable




                                                                                                                                                                                                                     AmInvestment
                 AMMB                                                    66.3%
                                                                                                                                                                                                                                                 Fitch                                 BB+/B/Stable                             BBB/F3/Stable
                  HLFG                                                                           93.8%
                                                                                                                                                                                                                                                 S&P                                   BB+/B/Stable                             BBB/A-2/Stable

                  RHB                                                                            94.1%                                                                                                                                           MARC                                  AA-/MARC-1/Stable                        AA-/MARC-1/Positive




                                                                                                                                                                                                                                    Islamic
-20.0%                         0.0%                      20.0%                      40.0%                         60.0%                          80.0%                       100.0%                                                              RAM                                   A2/P1/Stable                             AA3/P1/Stable




                                                                                                                                                                                                                     Am
                       Target Price and Recommendations
                 15.09
                 AMMB HOLDINGS BERHAD                                                                                                                                                                                                                                                                                                     Average TP    : RM 7.10    0
                                                                                                  P/ EPS = 10.99                                                         Market Price: RM 6.52                                                                                                                                            Buy           : 16 (57%)
                                                                                                  P/BV = 1.84                                                                                                                                                                                                                                                9 (32%)
                                                                                                                                                                                                                                                                                                                                          Hold          :
                                                                                                                                                                                                                                                                                                                                          Sell          :    3 (11%)
                                                                                                                                                                                                                                                                                                                                          Average TP/Average CP: 1.09
    8.30
                  7.90           7.90         7.80        7.71         7.60         7.50          7.50          7.50          7.45        7.40        7.35        7.30         7.30         7.30        7.15                    7.00             6.90         6.90         6.90        6.70         6.60         6.40         6.38         6.31         6.11        6.06
                                                                                                                                                                                                                                                                                                                                                                                 5.55
                   19 May 11
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      UBS          CIMB               TA        RHB          HLIB      KIMENG        CLSA          MBB                JP       BNP           KAF      DEUT        MACQ NOMURA MIDF                      BofAML                        CITI          OSK         UOB           DBS ALLIANCE            KEN        MIMB         AFFIN INTERPAC S.CHART                 ECM         GOLDMAN

                                                                                                                                                                                                               TP: target price
              Buy/Outperform/Overweight/Add                                                                   Hold / Neutral / Market perform
                                                                                                                                                                                                               TP & recommendations by MIMB & INTERPAC are based on previous Bloomberg information as there is no subsequent update
           P/EPS : EPS annualized Jan 11 – June 11 P/BV : BV as at 30 June 11                                 Sell/Underperform/Fully valued/Reduce/Underweight                                                Source : Bloomberg as at 1 July 2011

                                                                                                                                                                                                         AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012                                                                                                 51
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


  Disclaimer of Warranty and Limitation of Liability
  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
  or in part, for any purpose.
  The term "AMMB Holdings" and “AmBank Group” denotes all Group companies within the AMMB Holdings Group and this Disclaimer of Warranty and Limitation of Liability policy applies to
  the financial institutions under AMMB Holdings.




                                                                                                            AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012        52
           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



Tel : +603 2036 1435               Fax : +603 2031 7384                  e-mail : ganesh-kumar@ambankgroup.com or
      +6012 2974799                                                               ir@ambankgroup.com




                                                                      AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2012   53

								
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