AmBank Group...AmBank Group. AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 2 ... 4 DIVISIONAL...

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 1

AMMB Holdings Berhad

Ashok RamamurthyGroup Managing Director

VisionAs Malaysia’s preferred diversified, internationally connected financial solutions group, we take pride in growing your future with us

Investors PresentationFY2013 Results 16 May 2013

AmBank Group


EXECUTIVE SUMMARY Page 31

FY2013 GROUP FINANCIAL PERFORMANCE Page 112

OUTLOOK & STRATEGIC PRIORITIES Page 223

DIVISIONAL STRATEGY & PERFORMANCE Page 264

SUPPLEMENTARY INFORMATION – AMBANK GROUP Page 38

SUPPLEMENTARY INFORMATION – ECONOMY & INDUSTRY Page 526

5


FY2013 Key Highlights

Optimal diversification agenda

Strong CASA growth, with CASA composition now @ 20%

LDR at preferred levels (circa 90% 2%), with diversified funding base

Rebalancing loans portfolio via growing non-retail and in profitable retail segments

Banking entities capital optimally positioned for Basel 3

Acquisition synergies on track

Kurnia & MBF Cards: Stronger market position & progressively realising synergies

AmLife & AmTakaful: Exploring strategic partnerships

Consistent growth & returns

6th consecutive year of record performance, consistently met financial aspirations

FY2013 PATMI up 10.2% with positive momentum across most divisions

Improving returns (ROE: 14%)

Proposed dividend payout: 41%

Clear strategic priorities

Accelerate growth & business mix changes

Strengthen customer centricity & connectivity

Increase productivity & efficiency

2

4

1

3


1 CAGR computed based on FY2007 underlying profit of RM 556.9 million 2 Include term funding and loans sold with recourse 3 Based on net loans over adjusted customer deposits4 Before proposed dividend ^ Restated with retrospective application of MFRS and BNM guidelines, where applicable

Performance

Growth

Risk, Capital & Funding

Profile

1

2

3

Reposition, Build New Growth

Options

Improved returns

FY07 FY08 FY09 FY10 FY11 FY12^ FY13∆%^

FY13 vs FY12

CAGR^

FY07 - FY13

Pre ANZScale &

Presence

Aggressively Invest, Optimise & Leverage Connectivity

PATMI (mil) (282.5) 668.5 860.8 1,008.6 1,342.8 1,484.4 1,635.1 10.2% 19.7%1

ROE -5.8 % 11.5 % 11.7 % 11.5 % 13.6% 13.8% 14.0% 0.2% 3.3%

ROA -0.17 % 1.02% 1.04% 1.13% 1.39% 1.39% 1.40% 0.01% 0.26%

EPS (sen, basic)

-13.3 28.2 31.6 34.7 44.7 49.6 54.5 9.8% 13.0%

Net Lending(bil)

50.3 54.4 57.9 64.8 71.1 75.7 82.6 9.1% 8.6%

Customer Deposits2 (bil)

45.9 57.9 65.2 70.7 81.5 84.6 93.1 10.0% 12.5%

CASA (bil) 5.3 6.3 7.0 8.5 10.4 13.2 16.8 27.8% 21.2%

Net NPL / Gross Impaired Loans (FY10 onwards)

6.2% 3.7% 2.6%1.5% / 3.81%

3.33% 2.45% 1.98% 0.47%

RWCAR4 10.1% 14.1 % 15.2 % 15.8 % 14.4% 15.7% 14.8%

CET 14 5.8% 7.6% 7.7% 8.1% 8.0% 9.2% 9.3%

LD Ratio3

109.8%94.1% 88.7% 91.7% 87.3% 89.5% 88.7% 0.8%

CTI 38.8% 40.2% 43.3% 42.0% 39.9% 41.6% 46.9% 5.3%

Consistent growth in shareholders‟ returns

Basel III

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


Commercial Banking1 Investment Banking2

Life Assurance & Family Takaful

283.0308.0

449.2

243.4

FY10 FY11 FY12 FY13

48.760.2

93.6

167.9

FY10 FY11 FY12 FY13

General Insurance

Commercial banking activities and recent acquisitions driving profit growth

PAT (RM‟mil)

PAT (RM‟mil) PAT (RM‟mil)

1 Commercial banking represents Retail, Business, Corporate & Institutional Banking activities2 Investment Banking represents Investment Banking and Markets activities

32.1

61.8

7.7

-63.9

FY10 FY11 FY12 FY13

^ Restated with retrospective application of MFRS and BNM guidelines, where applicable

867.3 930.7

982.3

1294.0

FY10 FY11 FY12 FY13

982.5

1,298.7PAT (RM‟mil)

930.7867.3

^ ^

^


64.8 71.1 75.7 82.6

70.781.5

84.693.1

91.7% 87.3%

89.5%88.7%

FY10 FY11 FY12 FY13

Net lending Customer deposits LDR

8.1%* 8.0%*9.2% 9.3%

10.3% 10.2%11.3% 11.0%

15.8%14.4%

15.7%14.8%

FY10 FY11 FY12 FY13

CET 1 Ratio Tier 1 CAR RWCAR/Total Capital Ratio

* include preference shares

8.5 10.4 13.2 16.8

59.964.0 63.6

67.9

0.40.4

0.50.1

1.86.7

7.38.2

FY10 FY11 FY12 FY13

CASA FD Negotiable Instruments Term funding

Steady progress made on diversification agenda and capital efficiency

RM’bil

LDR: Operating within preferred levels Rebalancing loans portfolio

Capital: Optimally positioned for Basel III Diversified funding base

Basel II Basel III

70.7 81.5 84.6 93.1RM’bil


^

^

---------------------- Before proposed dividend ---------------------------

8.1%* 8.0%*9.2% 9.3%

10.3% 10.2%11.3% 11.0%

15.8%14.4%

15.7%14.8%

FY10 FY11 FY12 FY13


* include preference shares

Conventional

73%

Islamic

27%

Fixed

rate

45%

Variable

rate

55%


Strategic Priorities Progress

New retail structure in place to drive reshaping program around customer solutions

Retail : non-retail loans mix portfolio improved to 58%:42% (FY12 – 59%:41%)

Good growth in Transaction banking (up 36.5%), increased collaboration with ANZ

Expanding international connectivity initiatives (ANZ, Travelex, Western Union)

Investing in IT and risk infrastructure to support medium term growth

Launched AmSignature, Visa Infinite & World Mastercard and 5 Priority Banking branches targeting affluent segments

Optimized footprint and increased self-service machines at strategic locations

Revamping of channels to refresh customer experience

Launched our new brand values “P2ACE” – Principled, Proactive, Appreciative, Connected & Evolving

CTI increased to 46.9% due to new acquisitions

Integrations and other efficiency initiatives underway will deliver efficiency gains in future years

Unveiled Group‟s new Vision, Mission, values and employees value proposition - „i Am Connected‟

Acquired Kurnia & MBF Cards - integrations on track to deliver synergies

Exploring potential strategic partnerships for AmLife and AmTakaful

FY2013: delivering on strategic priorities

Accelerate Growth & Business Mix Changes

1

Strengthen Customer Centricity & Connectivity

2

Increase Productivity & Efficiency

3

Acquire & Integrate

4


RM1.627 bil cash purchase price (valuation: P/B 1.95x based on Kurnia 30 Jun 2012 net assets)

Funded by internal cash resources & ~ RM500 mil senior debt for AMMB‟s portion

AmGeneral Insurance: Kurnia integration on track to deliver synergies

Synergistic benefits:

Business priorities & progress and next steps

Investment summary:

Acquisition of Kurnia

Integrated claims &

operations

Completion of

integration

26 Sept 12 1 Mar 13 Q4 13Q3 13

Vesting Day 1

Today

* Includes depreciation

Synergies

RM milSynergistic benefit cost

Cost CumulativeAcquisition

cost

FY13 (11.0)* 25.5 25.5 (20.5)

FY14 (7.3)* 24.9 50.4 -

FY15 (5.4)* 4.1 54.5 -

Integrated sales &

underwriting

Q2 14

Vesting day – 1 Mar 2013, AmG transferred its general insurance business to its wholly-owned subsidiary, KurniaInsurans (M) Bhd. Concurrently, Kurnia was renamed “AmGeneral Insurance Bhd”

Dual branding strategy – “AmAssurance” & “Kurnia”, first in the general industry for the Malaysian general insurance market

4 dual branded pilot branches launched, remainder of branch consolidation will be completed by end of 2013

# 1 position in motor & general insurance

• Branch network that has an extensive geographical coverage with combined dealers/agency force of over 7,600 (as at 31 Mar 2013)

• Achieved GWP of >RM1.7 bil, with approx. 12% market share and over 3.6 million policyholders.

• New management team appointed and agency and Bancassurance channels in place.

• Underwriting model to be harmonized by Q4 2013

• Centralisation of policy processing and HR benefits alignment – target to complete by Q2 2014; roll-out of Motor (phase 1) – Q4 2014

Full integration by Q2 2014

* Includes depreciation, excludes funding cost

https://www.kurnia.com/malaysia


RM641.4 mil cash purchase price (valuation: P/B 2.9x based on NAV @ 30 Nov 2012)

Funded by internal cash resources & ~ RM500 mil senior debt

RM milSynergistic

benefit cost

Synergies AcquisitioncostRevenue Cost Total Cumulative

FY13 (10.5) 0.1 2.4 2.5 2.5 (3.5)

FY14 (32.8)* 5.7 13.4 19.1 21.6 -

FY15 (1.5)* 17.1 25.7 42.8 64.4 -

Acquisition of MBF

Vesting Day 1

System & operational functions fully

integrated

10 Jul 12 3 Dec 12 1Q142Q – 3Q13

Legal Day 1

Today

Synergistic benefits:

Business priorities & progress and next steps

As at 31 Mar 2013, cards in circulation increased to >500,000, market position by receivables strengthened to #6

Enlarged merchant forces: on a combined basis, over 3,000 new merchants acquired since Dec 2012, combined merchants greater than 50,000 to-date

Integration updates:

• 100th day integration completed

• Select Synergies Initiatives kick started

• Office relocation to Menara MBf– completed on 7 Apr 2013

• Integrating IT system into one system – target to complete by 1Qtr 2014

• Commenced merchant pool review and integration, target to complete by 1Qtr CY2014 (System Day 1)

• Branding to be progressively re-aligned to AmBank Group

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

MBF Cards: Completed detailed plans and commenced integration activities

Investment summary:

* Includes depreciation, excludes funding cost



Mandy SimpsonChief Financial Officer

VisionAs Malaysia’s preferred diversified, internationally connected financial solutions group, we take pride in growing your future with us

Investors PresentationFY2013 Results 16 May 2013

AmBank Group








5


PATMI FY12* Net interest incomeNon Interest Income Total income Expenses PBP Impairments PBT Taxation & zakat PAT Minority interests PATMI FY13PATMI FY12* Net interest incomeNon Interest Income Total income Expenses PBP Impairments PBT Taxation & zakat PAT Minority interests PATMI FY13

PATMI FY12* Net interest incomeNon Interest Income Total income Expenses PBP Impairments PBT Taxation & zakat PAT Minority interests PATMI FY13

3.8% 69.9% 14.5% 19.8%

1,635.1 mil

10.2% 1.7% 7.5% 7.2% 10.5%

1,484.4 mil

PATMI*FY12^

Net Interest Income

Non-Interest Income

Total income

Expenses PBPProvisions/Allowances

PBTTax & Zakat

PAT MIReportedPATMI*

FY13One-off #

UnderlyingPATMI*

FY13

FY13 (RM’mil)

2,981.8 1,392.5 4,374.3 2,051.4 2,322.9 143.3 2,179.6 486.4 1,693.2 58.1 1,635.1

FY12^(RM’mil)

2,854.0 1,447.0 4,301.0 1,791.1 2,509.9 476.3 2,033.6 500.7 1,532.9 48.5 1,484.4

4.5%

FY13 PATMIFY12 PATMI Positive growth in FY13 Contraction in FY13

* PATMI: profit after tax and non controlling interests

Net interest income and lower allowances underpinned FY2013 results

Growth

1,661.1 mil

11.9%

# one-off acquisitions related expenses

26.0 mil

Reflects (1) acquisition & operating costs to deliver synergies, and (2) ongoing medium term investments

PATMI FY12*Net interest incomeNon Interest IncomeTotal income Expenses PBP Impairments PBT Taxation & zakat PAT Minority interests PATMI FY13

Gross Loans FY12* Auto Financing Mortgage Credit Cards Line of Credit Co-Op Asset Financing Business Banking (ex GLR)

Corporate & Institutional

Banking

Others Gross Loans FY13

2.9%



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

* Performances reflected within divisional outcomes1. Life Assurance surplus is transferred into life policy shareholders‟ fund in overall Group accounts2. Includes expenses for recently set-up AmFamily Takaful business

83%

16.0% 37.4% >100.0% 36.5%

PATMI*FY12^

Retail BusinessCorporate & Institutional

Investment MarketsGeneral

InsuranceLife

Assurance1

Operating Segments

MI

Transaction* Islamic*

PATMI*FY13

% of Composition

36% 20% 23% 4% 11% 10% -3% 2% -4%

FY13(RM’mil)

591.1 332.3 375.3 68.5 174.9 167.9 -54.8 37.92 -58.1 168.0 270.3

FY12^ (RM’mil)

509.5 241.9 231.1 153.0 296.2 93.6 18.7 -11.22 -48.5 123.1 242.6

Conventional PATMIIslamic PATMI Positive growth in FY13 Contraction in FY13

1,484.4 mil

84%

16%

1,635.1 mil

17%

Growth

Note: Includes Kurnia’s 6-months & MBF’s 4-month performance

19.8%

PATMI FY12 Retail banking Business banking Corporate &Institutional

InvestmentBanking

Markets GeneralInsurance

Life Assurance OperatingSegments

Minority Interest PATMI FY13

PATMI by division


Profit growth driven by lending activities and general insurance


Total income FY12 Retail banking Business banking Corporate & Institutional Investment Banking Markets General Insurance Life Assurance total operating total income FY13

36.7% 23.2% 1.7%5.3% 11.4%

IncomeFY12^

Retail BusinessCorporate & Institutional

Investment MarketsGeneral

InsuranceLife

AssuranceOperating Segments

IncomeFY13

% of Composition

43% 14% 12% 8% 7% 9% 1% 6%

FY13(RM’mil)

1,883.3 619.3 526.0 346.3 295.1 396.4 50.1 257.72

FY12^ (RM’mil)

1,787.8 555.7 384.9 450.7 463.3 209.5 149.0 299.92

4,301.0 mil

4,374.3 mil

Growth

Income by division

36.3% 89.2% 66.4% 14.1%

28.7

66.8

16.2

74%

41.0

100.2

-6.4

-161.8

7.4

179.5

5.6

-104.5

47.4

10.0

-114.5

-65.0

22.8

Total non interest income

Total interest income Positive interest income growth in FY13

Contraction interest income in FY13

Positive non interest income growth in FY13

Contraction non interest income in FY13

34%

66%

32%

68%


Income growth driven by commercial banking divisions and general insurance


NII FY 12 Fee on loan AUM Investment Banking Banc Others Total Fee income Sales Trading Others Total Trading & InvestmentGeneral Life Total Insurance Other NII FY 13

* IB business includes brokerage fees, underwriting fees and corporate advisory & guarantees

FY12^Fees on

lending &

securitiesAUM

IBbusiness*

BancaOther fee income

Total Fee

incomeSales Trading

Othertrading &

invtmt

Trading & Investment

GeneralLife &

TakafulInsuranceBusiness

Others FY13

% of Composition 19% 11% 12% 3% 9% 54% 8% 13% 8% 29% 20% -5% 15% 2%

FY13(RM’mil)

265.2 155.8 172.1 42.1 119.2 754.5 115.3 172.5 108.8 396.6 285.3 -76.0 209.4 32.1

FY12^(RM’mil)

228.5 125.6 183.7 31.5 132.2 701.5 136.2 371.5 106.6 614.3 144.7 -27.7 117.0 14.2

As % of total income 34% 32%

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

1,392.5 mil

2.1%

Non-interest income movement

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

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

FY13 non interest income

Positive growth in FY13 Contraction in FY13

NII FY12 Fee on loan AUM InvestmentBanking

Banc Others Total Feeincome

Sales Trading Others Total Trading& Investment

General Life TotalInsurance

Other NII FY13

Retail: +41milBB & CIB: +27milIB & Markets: -32mil

FY12 non interest income





Other NII FY13NII FY12 Fee on loan AUM InvestmentBanking




Other NII FY13


1,447.0 mil


NIM in line with guidance

FY10 FY11 FY12^ FY13

Cost of Fund NIM OPR SRR

Note :1 Net Interest Margin includes Net Financing Income from Islamic

Banking business2 FY10-H1FY13 based on internal data computation

Q1FY12^ Q2FY12^ Q3FY12^ Q4FY12^ Q1FY13 Q2FY13 Q3FY13 Q4FY13

COF

NIMF

SRRF

OPRF

COF

NIMF

SRRF

OPRF

3.44%

2.68%

2.92% 2.92% 2.86% 2.91% 2.90% 2.85%

2.92%

3.04%

2.98% 2.94% 2.94%3.05%

2.95% 2.90%3.01%

2.94%

FY09 FY10 FY11 Q1FY12 Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12

Cost of funds NIM

3.44%

2.68%

2.92% 2.92% 2.86% 2.91% 2.90% 2.85%

2.92%

3.04%

2.98% 2.94% 2.94%3.05%

2.95% 2.90%3.01%

2.94%


Cost of funds NIM

3.44%

2.68%

2.92% 2.92% 2.86% 2.91% 2.90% 2.85%

2.92%

3.04%

2.98% 2.94% 2.94%3.05%

2.95% 2.90%3.01%

2.94%


Cost of funds NIM

2.50%2.75% 2.75% 2.75%

3.00%

3.00%

1.00% 1.00% 1.00% 1.00%

2.00%

3.00%

4.00%

Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12

OPR SRR

SRR

OPR

2.50%2.75% 2.75% 2.75%

3.00%

3.00%

1.00% 1.00% 1.00% 1.00%

2.00%

3.00%

4.00%

Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12

OPR SRR

SRR

OPR

NIM and COF (YoY)

NIM and COF (QoQ)

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

3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%

2.00%

3.00%

3.50%

4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00%

Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13 Q4FY13

OPR SRR

2.25%2.75% 3.00% 3.00%

1.00% 1.00%

4.00% 4.00%

FY10 FY11 FY12 9MFY13

OPR SRR


Impact of tax exempted bonds on NIM : 2bps

2.68%

2.92%

3.13% 3.10%2.98% 2.94%

2.75% 2.68%

FY10 FY11 FY12 FY13

Cost of funds NIM

NIM

COF

3.08% 3.12% 3.13% 3.19% 3.09% 3.06%3.12% 3.12%

2.72% 2.73% 2.82% 2.75% 2.72% 2.69%

2.60%2.70%

Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13 Q4FY13

Cost of funds NIM

NIM

COF


21%20%

FY12 FY13

89% 89%

FY12 FY13

41.8%40.2% 40.5%

43.3%

FY10 FY11 FY12 FY13

PATMI FY12* Net interest incomeNon Interest Income Total income Expenses PBP Impairments PBT Taxation & zakat PAT Minority interests PATMI FY13





Other NII FY13

CTI reflects acquisitions and strategic investments for growth

FY12^ Personnel Establishment Marketing & Comm Admin & others Synergisticbenefit cost

Acquisitions cost FY13

% of Composition 59% 23% 8% 8% 1% 1%

FY13 (RM’mil) 1,218 463 165 160 21 24

FY12^ (RM’mil) 1,095 383 145 169 - -

Expense growth drivers

11.3% 20.8% 13.8% 5.0% >100.0% >100.0% 14.5%Growth

1,791.1 mil

1,094.6 1,218.3

383.2

462.8

FY12 Personnel Establishment Mkt & Comm Admin Integration Acquisition FY13

RM' Mil

2,051.4 mil

FY12 total expenses FY13 total expensesContraction in FY13 Increase expenses in FY13

^ FY2012: Restated with retrospective application of MFRS and BNM guidelines, where applicable

Banking Group CTIAmGeneral Combined

Operating RatioAmLife Management

Expense Ratio

AmG AmG+Kurnia


381.9

173.3

35.9

114.6

0.1

57.9 114.6%

129.3%

-3.3% 2.7%

15.3%

FY12 loan loss coverage

Collective allowance

Individual allowance

Impaired loans/financing

FY13 loan loss coverage

3.18%

0.97%0.60%

0.88%

6.2%

3.7%

2.6%

1.5%

10.4%

6.3%

4.1%

2.8%

3.81%

3.33%

2.45%

1.98%

0.50%0.21%

Net Provisions Charge Net NPL Ratio Gross NPL Ratio Gross Impaired Loans Loan Loss Charge(MFRS139)

114.6%129.3%

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

Asset quality continues to improve

FY12 Allowance for impairment



Recovery from loans

sold to Danaharta

Impaired loans – recovered &

written-off

FY13 Allowance for impairment

FY2011 FY2012^ FY2013Day 1

[1 April 10]

29bps

Gross Impaired Loans• Retail Bkg: 2.55%• Business Bkg: 1.13%

FY2012^ FY2013

Industry*

Loan Loss Coverage

183bps

Asset quality indicators

3.18%

0.97% 0.60%0.88%

6.2%

3.7%

2.6%

1.5%

10.4%

6.3%

4.1%

2.8%

3.81%3.33%

2.45%

2.38%

0.51%0.08%

FY2007 FY2008 FY2009 FY2010 Day 1 FY2011 FY2012 Q1FY2013

Net Provisions Charge Net NPL Ratio Gross NPL Ratio Gross Impaired Loans Loan Loss Charge (MFRS139)

MFR

S 1

39

MFR

S 1

39

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

* Mar 12 Vs Mar 13


FY12 loan loss

coverage



Impaired loans &

financing

FY13 loan loss

coverage

Movement in loan loss coverageRM‟mil

95.6%99.2%


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

Retail Biz & Corporate

5.9% 13.2%

77.9bil

6.6% 27.1% 11.1% 17.0% 2.2% 5.0%

84.8bil

42%

58%

8.9%

41%

59%

Gross LoanFY12

Auto Financing

Mortgage Cards Co-OpAsset

FinancingBusiness

Corporate & Institutional

OthersGross Loan

FY13

% of Composition

30.9% 19.0% 2.7% 2.0% 3.3% 20.7% 20.2% 1.3%

FY13 (RM’bil)

26.2 16.1 2.3 1.7 2.8 17.5 17.1 1.1

FY12 (RM’bil)

24.7 15.1 1.8 1.9 2.9 15.8 14.6 1.2

10.1%

No

n-re

tail

Reta

il

6.0%

Non-RetailRetail Positive growth in FY13 Contraction in FY13

Gross Loan / Financing movement

AmBank Cards : RM1.1bil

LOC: RM0.7bilMBF Cards: RM 0.5bil

Gross Loans FY12* Auto Financing Mortgage Cards Co-Op Asset Financing Business Banking (ex GLR)

Corporate & Institutional Banking

Others Gross Loans FY13

Conventional

73%

Islamic

27%

Fixed

rate

45%

Variable

rate

55%


-

1.0

2.0

3.0

4.0

5.0

6.0

7.0

FY06 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19+

RM'bil

Debt Capital Term Funding Loans sold to Cagamas

Issuance Maturity

15.0% 13.9% 14.5% 14.3%

77.4%74.5% 74.0% 74.5%

1.5% 6.9% 6.9% 6.9%1.2% 0.6% 0.8% 1.5%4.9% 4.2% 3.7% 2.8%

FY10 FY11 FY12 FY13

Improving funding composition

Equity & Debt Capital Deposits from Customers

Term Funding & loans sold with recourse > 1 yr Term Funding & loans sold with recourse < 1 yr

Deposits from Banks & FIs

Term funding, 10.7%

Individuals, 36.5%Biz

enterprises, 42.3%

Government, 10.6%

7.0 8.5

10.4

13.2

16.8

11% 12% 14%17%

20%

FY09 FY10 FY11 FY12 FY13

CASA CASA composition

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

Continue to diversify funding

95.7%

RM’mil

CASA composition

Improving CASA composition Improving funding composition

Diversifying funding Lengthening debt capital & term funding profile


6.0 6.6 7.06.08.0

10.5

12.013.5

15.018.3% 19.0%

28.1%

40.4%40.1%

40.6%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

0

5

10

15

20

25

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013

AMMB Holdings Berhad- Dividend trend

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

Dividend payout

Under a Basel III accord:

• The banking entities of the Group remain well capitalised and operated within internal target capital levels for FY2013:

o CET1: 8.33% ± 1.0%

o T1: 10.33% ± 1.0%

o Total Capital: 14.33% ± 1.0%

The Group is well positioned for its targeted dividend payout ratio, in line with the Medium Term Aspirations of 40-50% payout

Double leverage ratio1: 1.17x

Balance Sheet Leverage ratio2: 7.9%

Total leverage ratio3: 6.1%

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

9.3% 9.0% 8.9%

11.2% 10.7% 10.6%

15.9%14.6% 14.3%

31.12.12 1.1.2013 FY13


Basel II Basel III

Reduction reflects regulatory adjustments

Capital: Aggregated banking entities Higher dividend payout

* FY2012 dividend payout based on PATMI as originally reported1. Double leverage ratio computed based on AMMB Holdings company level2. Balance sheet leverage ratio: total equity net of deferred tax & intangible assets over total assets net of deferred tax assets & intangible assets 3. Total leverage ratio: total equity net of deferred tax & intangible assets over total assets net of deferred tax assets & intangible assets & off balance sheet

---------------------- After proposed dividend ----------------------------








5


FY2014 outlook

2013e GDP growth of 5.3%

Ongoing ETP initiatives expected to continue support lending & capital market activities

New Responsible Lending Guidelines and regulatory reforms moderating consumer loans growth

Moderating economy and price-based competitions for loans and deposits are ongoing challenges to maintain margins

Tougher economic environment may put some pressure on improving asset quality trends

OPR expected to remain at 3% for 2013 given the relatively low inflationary risk and current economic outlook

NIMs remain under pressure but lending rates are expected to stabilize

Opportunities & challenges

Source: BNM and PEMANDU websites

4.8%

-1.5%

7.2%

5.1%5.6% 5.3%

CY2008 CY2009 CY2010 CY2011 CY2012 CY2013e

%GDP (%)

GDP (%)

1 Based on AmResearch inhouse-view

Malaysia Banking

Source: ETP Annual Report 2012

2011 2012Progress to-date

Initiatives 110 39 149

Investment (RM’bil)

179.2 32.1 211.3

GNI (RM’bil) 129.5 6.6 136.1

Jobs 313,741 94,702 408,443

ETP execution gaining momentum

GDP growth resilient

• Ongoing ETP initiatives

• Accommodative macro policies

• Healthy labour market

• Low inflation, albeit trending up

Risks from household indebtedness appears contained

• Improving impaired loans ratio for household loans

• Prudent lending standards

• Greater regulatory intervention and oversight


1. Integrate acquisitions and deliver synergies

2. Simplify business model and streamline processes

3. Accelerate organic growth with focus on cross-sell, flow business, small business, and emerging affluent customers

4. Build scale in specialist businesses with partners

5. Optimise capital and holding company structures

Strategic Agenda for

AmBank Group over the next

3 years

Strategic Priorities


FY2012(restated)^

FY2013 FY2014 FY2015 – FY2016

1,484.4 1,635.1 10 – 12% 12 – 14%

13.8% 14.0% 14.0 – 14.5% 14.5 – 15.5%

41.6% 46.9%

≤46%;≤44%

(Banking Group)

≤45%;≤43%

(Banking Group)

2.45% 1.98% ≤2.0% ≤2.0%

20.1 sen / share

41%

22.0 sen / share

41%

40-50%Payout

40-50%Payout

PATMI*(RM’mil)

ROE (%)

CTI (%)

Gross impaired loans

(%)

Dividend:Single-tier

(sen)Payout (%)

Key performance indicators

Actual

NIM expected to contract ≤10 bps

Loan loss charge expected to be < 30 bps

Loans expected to grow circa 10%

LD ratio expected to maintain at ~90%, ±2%

CASA composition > 20%

Non-interest income composition at circa 35%

Target CET 1 of 8.5% (±1%), Tier 1 of 10.5% (±1%), RWCAR of 14.5% (±1%)

Other FY2014 underlying estimates

Underlying Estimates

1

2

3

4

5









5


Vision“As Malaysia‟s preferred diversified, internationally connected financial

solutions group, we take pride in growing your future with us”

Our Vision and divisional aspirations

* Conventional & Islamic

TRANSACTION*

Become Top 5 Transaction

Banking Service Provider

in Malaysia by FY2015 with 8% market

share

CIB*

Deliver innovative & quality solutions, increase „share of

wallet‟, target high-profile

and high-value clients and

leverage ANZ for x-border businesses

ISLAMIC

To be the Islamic Bank of choice

INVESTMENT*

Deliver comprehensive

solutions, lead in capital markets,

funds management, stock broking and enhance domestic

and overseasdistribution

via ANZ

MARKETS*

Deliver substantive,integrated and

client-led business with

full suite of FX, Rates,

Commodities and FI offerings

with ANZ collaborations

FAMILY TAKAFUL

To be the trusted Family Takaful

Operator of choice within

all of our selected markets

LIFE ASSURANCE

Trusted by our stakeholders

GENERAL INSURANCE

Leverage scale to lead the market in

the motoring segment,

whilst building a leading

personal lines portfolio and niche

commercial business

DIVISIONAL ASPIRATIONS

RETAIL*

Develop a liability-led business,

grow assets in targeted segments & expand Wealth

Management

BUSINESS*

Growing the business through decisive

execution


• Faster loans growth compared to previous quarters, continue targeting profitable segments

• Expanded fee based income via banca & other wealth propositions (aided by new products, campaigns & launched of priority banking channel) as well as stronger loans & deposits growth

• Improved deposit mix and grew CASA faster than industry leveraging on existing and new channels and alliances

• Brand refresh in progress targeting mass affluent segment

• MBF Cards integration in progress (incorporated results from Dec‟12 onwards), targeted to complete by year end

Retail Banking

Develop a liability-led business, grow assets in targeted segments and expand Wealth ManagementAspirations

Higher profits from improved asset quality and stronger loans growth

FY13 PATFY12 PAT Positive growth in FY13 Contraction in FY13

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

FY13

vs RM'mil FY12* FY13 FY12

PAT

FY12Income Expenses PBP Allowances PBT Tax

PAT

FY13

FY13

(RM'mil)1,883.3 831.4 1,051.9 265.9 786.0 194.9 591.1

FY12

(RM'mil)1,787.8 759.2 1,028.7 349.2 679.4 169.9 509.5

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

Outlook

PAT

Gross Loans /

Financing 46,319.7 49,040.7 ▲ +5.9%

Gross Impaired Loans 2.55% 1,221.6 1,250.7 ▲ +2.4%

Customer Deposits 33,804.8 37,229.8 ▲ +10.1%

CASA Deposits 9,150.6 10,284.6 ▲ +12.4%

* ROA 1.12% 1.24% ▲ +0.12%

CTI 42.5% 44.1% ▲ +1.7%

Allowance Coverage 84.4% 87.7% ▲ +3.3%

*

* Restated with retrospective application of MFRS and BNM guidelines, where applicable

*


Aspirations

Lending

&

deposits,

71%

Trade

Services

, 28%

Others,

1%19.6%

FY13 Income mix

• Higher income underpinned by improved fee income and asset growth

• Expanding customer base and value of business in preferred sectors (construction, manufacturing, oil & gas)

• Seized growth opportunities from beneficiaries of Economic Transformation Programme (ETP)

• Regional coverage teams provided diversified geographic loans and deposits growth

Business Banking

Growing the business through decisive execution

Higher income and strong loans and deposits growth

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

PAT

FY12 Income Expenses PBP Allowances PBT Tax

PAT

FY13

FY13

(RM'mil) 619.3 105.6 513.7 72.6 441.1 108.8 332.3

FY12

(RM'mil) 555.7 100.4 455.3 134.6 320.8 78.9 241.9

Gross Loans / Financing 15,758.8 17,511.2 ▲ +11.1% +11.1%

Gross Impaired Loans 1.13% 275.3 197.6 -▼ -28.2% -28.2%

Customer Deposits 7,023.1 8,406.6 ▲ +19.7% +19.7%

CASA Deposits 2,019.5 2,763.7 ▲ +36.9% +36.9%

ROA 1.66% 1.98% ▲ +0.32% +0.3%

CTI 18.1% 17.1% -▼ -1.0% -1.0%

Allowance Coverage 129.6% 146.1% ▲ +16.4% +16.4%

FY13 PAT(composition to Group)

FY13


Outlook • Expecting higher profit growth for FY2014

PAT

FY13 PATFY12 PAT Positive growth in FY13 Contraction in FY13* Restated with retrospective application of MFRS and BNM guidelines, where applicable

*

*


Gross Loans / Financing 14,625.5 17,104.8 ▲ +17.0%

Total Deposits 37,353.0 40,714.6 ▲ +9.0%

ROA 1.62% 2.26% ▲ +0.64%

CTI 20.2% 17.4% -▼ -2.8%

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

G

G

G

G

• Higher income growth underpinned by strong growth in lending, deposits and transaction banking

• Focused on growing share of wallet in key economic sectors and ETP projects

• Secured new structured trade mandates and loans & financing resulting in higher fee income and net interest income

• Increased diversification of deposit mix and penetration of cash management solutions

• Continued cross sell in key products/solutions under wholesale banking platform

Corporate & Institutional Banking

Target high-profile and high-value clients, increase ‘share of wallet’, deliver innovative and quality solutions and leverage ANZ for x-border businesses

Aspirations

Continued strong income and lending/ deposits growth

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


PAT


PAT

FY13

FY13

(RM'mil)526.0 91.4 434.6 -47.8 482.4 107.1 375.3

FY12

(RM'mil)384.9 77.6 307.3 12.7 294.6 63.5 231.1


22.2%

FY13


PAT

Lending &

deposits, 64%

Offshore

Banking, 7%

Asset Mgmt,

8%

Trade

Services & Cash Mgmt, 20%

FY13 Income mix FY13 PAT(composition to Group)

Services include : large corporate lending& deposits, financial institutions group, offshore banking, transaction banking, private equity, REITs and trustee services

Outlook • Anticipating good profit growth for FY2014

*

*


4.0%

• Improved contributions from funds management and private banking providing strong recurring income, partly offset by lower income from DCM and CF due to smaller deals size

• Decline in stock broking and equity derivatives contribution with lower trading volumes impacted by weaker market sentiments/global headwinds, and lower yields from increased competition. Notwithstanding this, broking market share has improved from 6.1% to 6.9%.

Investment Banking

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

Aspirations

Subdued performance with stable outlook


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

PAT 153.0 68.5 -▼ -55.2%

CTI 54.0% 72.2% ▲ +18.1%

* Ave Assets Management 31,484.4 36,673.3 ▲ +16.5%

Ave Volume / Contract Traded (RM'mil/month)

* IB Broking 4,373.0 4,515.0 ▲ +3.2%

* AmFuture - FKLI 56.9 27.2 -▼ -52.2%

Market Share as at:

* IB Broking 6.1% 6.9% ▲ +0.8%

* AmFuture -FKLI 13.2% 7.5% -▼ -5.7%

1

DCM,

7%

CF,9%

Equity,

3%

Fund

Mgmt,

39%

Private

Bkg,

9%

Int

Biz,

11%

Broking

&Future,

23%

FY13



Outlook • FY2014 profit contribution to normalise

PAT

PAT


PAT

FY13

FY13

(RM'mil)346.3 249.9 96.4 3.0 93.4 24.7 68.5

FY12

(RM'mil)450.7 243.6 207.1 2.9 204.3 51.3 153.0


*

*

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


10.3%

FY13


• Delayed in sales pipelines due to the announcement of GE13 on the domestic front

• Lower bond income from lack of significant primary issuance

• Risk aversion in trading arising from global and local uncertainties

Markets

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

Aspirations

Performance impacted by continued volatility in market

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


PAT


PAT

FY13

FY13

(RM'mil)295.1 71.3 223.8 -9.1 232.9 58.0 174.9

FY12

(RM'mil)463.3 75.0 388.3 -6.3 394.6 98.4 296.2

Outlook

• Higher FY2014 profit outlook supported by :

a) Intensifying cross sell initiatives by tapping into the Group‟s regional presence in FX and Derivatives business

b) Expansion of regional distribution and trading capabilities

PAT


Fixed

Income, 52%

CTI 16.2% 24.2% ▲ +8.0%+8.0%

PAT : FX and Derivatives 62.7 71.4 ▲ +13.9%+13.9%

Financial assets HFT 10,182.7 5,174.0 -▼ -49.2% -49.2%

Financial investments

AFS 2,168.5 2,268.1 ▲ +4.6%

+4.6%

Total Group:

Financial assets HFT 10,942.4 7,022.0 -▼ -35.8%-35.8%


AFS 6,641.2 7,208.6 ▲ +8.5%

+8.5%


HTM 1,429.8 6,219.8 ▲ +>100.0%

+335.0%


*

*


FY12

Claim ratio 64.2% 60.5% -▼ -3.7%

Expenses ratio 14.9% 17.3% ▲ 2.4%

Combined ratio 89.4% 89.4% -

FY13


• Higher net profits on higher premium growth, improved underwriting profits and one-off gains. One-off gains attributable to more favourable claims experience and closure/release of treaty commutation due to more favourable experience

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

• Integration of Kurnia on track to deliver synergies (incorporated 6 months of Kurnia PBT results of RM 91.6 mil), synergies to-date of RM25.5 mil

• Positive capital adequacy ratio exceeds benchmark supervisory target

General Insurance

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

Aspirations

Improved performance, commence Kurniaintegration

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

* Restated with retrospective application of MFRS and BNM guidelines, where applicableFY2012 reflects AmG standalone results only; FY2013 reflects AmG and 6-months of Kurnia integrated results

Outlook • Expecting higher premiums growth and profit for FY2014

PAT

9.9%


PAT


PAT

FY12

FY13

(RM'mil)396.4 189.3 207.1 -2.1 209.3 41.3 167.9

FY12

(RM'mil)209.5 86.3 123.3 -0.1 123.4 29.8 93.6

PAT


PAT

FY13


*

*


• Profits from life business reflected the revisions in reporting requirements, from change in classification of Non-Par fund and reserves from liability to equity

• Exploring new strategic partnership to become a leading insurance player

• Increased productivity of bancassurance leveraging Group‟s platforms

• Accelerated recruitment and training of quality agency force

• Rationalized product portfolio and distribution cost structure to deliver margin expansion

Life Assurance

To be leading Life Insurer in customer service, productivity and productsAspirations

Results reflecting revisions to reporting requirements

Growth 11.8% 78.9% 66.4% >100.0% >100.0% >100.0% >100.0%



Outlook • FY2014 profit contribution to normalise

PAT

FY13


-3.2%


PAT


PAT

FY13

FY13

(RM'mil)50.1 106.9 -56.8 4.6 -61.4 -6.6 -54.8

FY12

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

*

*

Total assets 2,992.9 3,139.6 ▲ +4.9%

CAR ratio 224.6% 228.9% ▲ +4.3%

Net earned premium 389.0 395.6 ▲ +1.7%


9.9%

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

• Core business competencies of full suite Cash Management and Trade & Supply Chain Services yielding impressive growth in CASA and higher customer utilisation in Trade

• Invested in enhanced technology platforms and streamlined documentation for seamless customer experience

• Higher transaction flows (up 46% yoy) from collaboration with ANZ

Transaction Banking

To become top 5 Transaction Banking Service Provider in Malaysia by FY2015 with 8% market shareAspirations

Higher profits and CASA growth from growing share of wallet


22.0%Growth 22.3% 19.8% 33.3% 36.5% 36.5% 36.5%

PAT


PAT

FY13

FY13

(RM'mil)293.8 42.0 251.8 27.8 224.0 56.0 168.0

FY12

(RM'mil)240.9 35.1 205.8 41.7 164.1 41.0 123.1

FY13


Cash

Mgmt,

52%

Trade

Services,

48%

FY13 Income mix FY13 PAT

(composition to Group)

Outlook • Anticipate good profit growth for FY2014

PAT

Gross Loans / Financing 4,691.0 5,099.0 ▲ +8.7%

Trade Finance 4,616.1 4,986.2 ▲ +8.0%

Cash Management 16,960.9 19,658.7 ▲ +15.9%

CASA Deposits 4,481.5 7,199.6 ▲ +60.7%

ROA 2.79% 3.40% ▲ +0.6%

CTI 14.6% 14.3% -▼ -0.3%


*

*



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

• Strong financing growth in both retail (driven by auto financing) and non-retail. Greater emphasis was placed to grow GLC and GLIC business while capitalising on ETP related projects.

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

Islamic Banking

To be the Islamic Bank of choiceAspirations

Lower provisions despite strong loan growth


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

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

PAT16.0%

FY13


PAT


PAT

FY13

FY13

(RM'mil)847.8 353.4 494.4 146.2 348.2 77.8 270.3

FY12

(RM'mil)795.0 304.3 490.7 159.8 330.9 88.4 242.6


*

*

Gross Financing 18,968.2 22,492.2 ▲ +18.6%

Gross Impaired

Financing 1.19% 237.7 268.4 ▲ +12.9%

Customer Deposits 18,263.1 23,176.5 ▲ +26.9%

CASA Deposits 4,441.6 6,639.9 ▲ +49.5%

ROA 1.02% 0.93% -▼ -0.09%

CTI 38.3% 41.7% ▲ +3.4%

Allowance

Coverage 200.5% 188.1% -▼ -12.5%



• Includes funding cost to support recent acquisitions

• Includes AmFamily Takaful 1st year results

• MI represents non-controlling interests of the Group

Group Operating Segments


3.0%

2.2%

14.1%Growth >100.0% 14.7% >100.0% 73.6% >100.0 >100.0%

PAT

19.8% > 66.2%

FY13 PATMIFY12 PATMI Positive growth in FY13 Contraction in FY13

PATMI


PAT

FY12MI

PATMI

FY13

FY13

(RM'mil)257.7 405.5 -147.8 -143.8 -4.0 -41.9 37.9 58.1 -20.1

FY12

(RM'mil)299.9 353.5 -53.5 -38.5 -15.0 -3.9 -11.2 48.5 -59.6

*

*








5


Strategic Business Transformation: Good Progress

Set Group‟s MTA, transformation strategy, agenda and targets Enhanced focus on asset quality and risk reward trade offs Realigned business model towards profitable segments in HP, mortgage & fixed

income Consolidated Group balance sheet activities within commercial bank Split composite insurance license to General and Life

Strategic Business

Transformation

High Priority Growth

Initiatives

Governance & Enablement Functions

Created deposit businesses as profit centres across Group Commenced realigning non-retail customer segmentation and divisional focus Proactively strengthened capital and liquidity management Repositioned balance sheet for rising interest rates

Completed realignments in non-retail customer centric business models Continued expanding product offerings and new capabilities in Markets division Balance sheet funding strengthened via long term fund raisings

Developed retail focus customer centric business models Implemented basic account plans for business customers to increase SOW Initiated Group Rebranding program Initiated revamping of branches to refresh customer experience Realigned account management teams for more effective account planning

FY2012 & FY2013

60 & 72 months

FY2011

48 months

FY2010

36 months

FY2008 & FY2009

12 & 24 months


High Priority Growth Initiatives: Implemented To-Date

Created new profit centre based retail branch distribution model Created a separate Corporate and Institutional Banking (CIB) DivisionDeveloped new FX business in collaboration with ANZ Enhanced cash management offering via Gross Payroll system Friends Life brought in as new life strategic business partner

Accelerated building of scale in non-retail customer businesses Increased focus on GLC, GLIC and MNC businessesDeveloped new Rates business in collaboration with ANZ Expanded distribution footprint (particular focus on 7-11 ATM‟s) & alternative

channels

Commenced activities to leverage ANZ International connectivityDeveloped new wealth management business strategies Created a new Transaction Banking business focusing on trade and cash

management

Inked business principle agreements with ANZ to leverage international connectivity

Commenced a new family Takaful business with Friends Life Commenced Priority Banking expansion initiatives Completed Kurnia & MBF Cards acquisitions and commence integration Repurchased remaining shareholding in AmLife and AmTakaful Secured approval as Private Retirement Scheme (PRS) provider Established partnership with Travelex for money changing services

Strategic Business

Transformation


Initiatives


FY2012 & FY2013

60 & 72 months

FY2011

48 months

FY2010

36 months

FY2008 & FY2009

12 & 24 months


Governance and Enablement Functions Streamlined:Supports Better Decision Making

Privatised AmInvestment Bank as part of migration to universal banking platform Consolidated / simplified governance committee structures and strengthen risk disciplines Created a Group PMO to prioritise and manage key strategic initiatives Established Advance Risk Recognition Program (ARRP) Separated ALCO, capital and balance sheet management from Markets Delivered Peer Bank relative performance benchmarks Implemented short and long term performance incentives

Delivered 8 new generation retail scorecards & new market risk models Commenced PD, LGD & EAD models for retail and non-retail, non-retail security indicators Developed leadership bench-strength and succession planning Implemented Operational Risk Incident Reporting system and Basel II capital calculator

Implemented FTP system aligned to balance sheet strategies Consolidated some Group Support into Centres of Excellence Initiated new retail and non retail PD / LGD models, Security Indicators, Collateral

management, and Market risk system (VIPER) Initiated core banking system replacement programme

Implemented a new ALM system and divisional capital allocations under Basel II Integrate new Basel III frameworks into planning processes Finalised vendor selection and commenced core banking system replacement Developed AmFamily Takaful system to support commencement of Takaful business Implemented Model Execution Platform (MEP) provisioning methodology for better risk

assessment and pricing capabilities Transitioned to full MFRS 139 compliance on collective provisioning for credit risk Developing new behavioral scoring models for Retail and SME portfolio

Strategic Business

Transformation


Initiatives


FY2012 & FY2013

60 & 72 months

FY2011

48 months

FY2010

36 months

FY2008 & FY2009

12 & 24 months


Funding strategy, improving diversity

RM10 bil senior notes programme

1st senior notes issuance by a financial institution in Malaysia

AmBank has outstanding RM2.72bil senior notes (RM7bil over 30 year programme) as at FY2013

AmIslamic has outstanding RM550m senior sukuk (RM3bil musyarakah programme) as at FY2013

Both rated AA3 (RAM)

Subordinated Sukuk

RM2bil subordinated sukuk musyarakah programme (issued RM600mil in Sep‟11,RM200mil in Jan‟12 & RM200mil in Dec‟12)

Medium Term Notes

RM2bil medium term note (outstanding RM1.97bil as at Dec‟12)

RM2bil medium term note (issued RM1.0bil in Aug‟12 & RM0.3bil in Nov‟12)

Improve funding stability, maturity gap & liquidity ratios

Reduce dependence on short-dated deposits to fund long-dated fixed rate loan assets which incur liquidity risk and interest rate risk

Diversifies investor base

No obligation for buy back since we are not exposed to withdrawal risks and the notes are traded in the open market

Enable depositors to invest in long and medium dated papers

Supplemented by:

Customer deposits

Enhance domestic distribution through branches/channels aligned to demographics

Adjusted LDR1 of 88.7%

CASA: RM16.8bil (growth = 27.8%), FD: ~RM67.9bil (strong retention)

Funding diversity underpinned by:

Benefits to funding strength

Statutory reserve and liquidity requirement savings

Reduced exposure to interest rate risks

Loans with Recourse

Recourse obligations on loans sold to Cagamas (maturing 2017)

Islamic financing sold to Cagamas (maturing 2016)

1 Based on net loans including loans sold with recourse over adjusted customer deposits (adjusted customer deposits include term funding and loans sold with recourse)


117.3 215.6

332.9

574.7

907.6

129.0

240.6

369.6

642.5

1,012.1

Savings Current Account CASA Fixed Deposits Core Deposits

Mar'12 Mar'13

10.0% 11.6% 11.0% 11.8% 11.5%

4.8 8.4 13.2

63.6

76.8

5.1

16.8


Mar'12 Mar'13

6.6% 39.7% 27.8% 6.8% 10.4%

67.9

84.8

11.8

Savings Current Account

CASA Fixed Deposits Core Deposits

Industry Deposits Growth by Type

RM’bil

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

Source : BNM, internal reports

RM’bil

AmBank Group Deposits Growth by Type

6.0%

13.9%

81.3%

AmBank Group Core Deposits

Composition

Savings

Current Account

Fixed Deposits


12.7%

23.8%63.5%

Industry Core Deposits

Composition

Savings

Current Account

Fixed Deposits


28.0

13.6 2.1 2.1

8.4

2.5 1.2 0.001 2.8 20.0

4.1

45.8 39.0

84.8

Purchase ofTransportVehicles

Purchase ofRes Properties

Credit Cards Personal Use Purchase ofNon-Res

Properties

Purchase ofSecurities

Fixed Assets ConsumerDurables

Construction WorkingCapital

Other purpose Retail Loans Business &Corporate

Loans

Total loans

Mar-13

5.4% 6.7% 24.8% 0.5% 31.5% 45.0% 8.7% 25.2% 30.3% 8.0% 12.8%

6.2% 12.1%

8.9%

156.9 312.9

32.2 55.8 137.2 60.4

9.0 0.1 30.7 266.9 69.3

557.7 573.6

1,131.3

Purchase of

TransportVehicles

Purchase of

Res Properties

Credit Cards Personal Use Purchase of

Non-ResProperties

Purchase of

Securities

Fixed Assets Consumer

Durables

Construction Working

Capital

Other purpose Retail Loans Business &

CorporateLoans

Total Loans

Mar-13

10.1% 11.0%

10.6%

8.1% 12.4% 1.2% 9.1% 18.2% 29.3% 1.3% 20.7% 13.1% 3.2% 17.5%

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

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

RM’bil

Source : BNM, internal reports

RM’bil

AmBank Group Loans Growth by Economic Purpose*

Industry Loans Growth by Economic Purpose

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

* Based on BNM classification


Retail customer centricity transformation journey

Previously

Product silo approach

• Products specific sales approach

• Pricing based on individual product profitability

• Customers not recognised for their total portfolio with the group

Basic segmentation –differentiate customers based on demographics

Life stage focus: Family, Youths, Seniors

Product based strategy Developing bank-wide

segment strategy

Integrate marketing programs

Channel optimisation

Building segment capabilities

Maximise customer‟s relationship

Elevate & evolve segment focus

Entrench segment focus

Upgrade research & analytics

Increase sophistication in segment marketing

FY2013 – 2014Segment Expansion

FY2015 & beyondSegmentation focus

Building “Customer Centricity” model

“Main bank” for our selected customer segments

Segment focused organization culture

Higher share of wallet, top-of-mind awareness

Building in progressOutcome

Customer Centric organisation


ANZ & AmBank Group Partnership

ANZ diversified footprint in Asia

16 Asian markets, 98 branches and 5 Partnerships

Source: Trade Finance Magazine 2013

ANZ role and value add

ANZ’s representation on Board and within management

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

OA

RD

MA

NA

GEM

EN

T

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

Banking

Management• Senior GM, Transaction Banking• Head, Wealth Management

• Seconding ANZ staff into key roles

• Providing technical expertise

• Support new product development

• Two-way customer referrals

• Joint account planning

• Access to regional network & connectivity

CHINA

HONG KONG

PHILIPPINES

VIETNAM

NEW ZEALAND

SOUTH KOREA

JAPAN

TAIWAN

INDONESIA

AUSTRALIAPACIFIC ISLANDS

SINGAPORE

LAOS

THAILAND

CAMBODIAMALAYSIA

PAPUA NEW GUINEA

FIJI

INDIA


AmGeneral Insurance Berhad – No 1 position in Motor

• Justin Breheny (IAG Asia CEO) - Director

• Duncan Brain - Director

SENIOR MANAGEMENT

• Duncan Brain – Advisor

• Travis Atkinson – CEO AmGeneral Insurance Berhad

• Stephen Beatty – General Manager, Claims

OPERATIONAL & PROJECT SUPPORT / CONSULTANTS

• Around 7 operational and project support / consultants

Bo

ard

Man

ag

em

en

t

Involved in the management of AmGeneralInsurance, offering skills transfer, partnership and relationship models of IAG

Adding value through claims re-engineering savings, increased revenue via product development, underwriting and pricing

GENERAL INSURANCE

Valu

e P

ro

po

sit

ion

AmG completed the Kurnia acquisition on 26 September 2012. The combined entity was renamed AmGeneral Insurance Berhad on 1 March 2013.

One of Malaysia’s leading general insurers and the number one motor insurer

Insures around one in five cars in Malaysia (~21% market share) and ~12% market share for general insurance by GWP

GWP over RM1.7 billion

4 million policy holders and a diversified distribution base – 7,000 plus agents, supported by a national network of branches and over 180 AmBank branches across the country

Cost synergies and operational efficiencies to achieve value accretion over the next 2 years

IAG provided substantial leadership and input into the acquisition process and integration planning

Resources from IAG Group have been mobilised to Malaysia to assist with integration

Am

Gen

eral

In

su

ran

ce

Leveraging strategic partnership with global insurance partner

https://www.kurnia.com/malaysia


1.Peer banks as at Dec 2012, AmBank as at latest practical date 2. AmLife & AmG branches and agency office

Multiple distribution channels aligned to demographics

Kuala LumpurBranches 29ATMs 149

TerengganuBranches 4ATMs 20

JohorBranches 23ATMs 97

MelakaBranches 5ATMs 37

Negeri SembilanBranches 8ATMs 44

PahangBranches 8ATMs 36 Sarawak

Branches 17ATMs 47

SabahBranches 9ATMs 35

Pulau PinangBranches 16ATMs 52

PerlisBranches 1ATMs 4

KelantanBranches 2ATMs 22

PerakBranches 19ATMs 49

KedahBranches 5ATMs 29

PutrajayaBranches 1ATMs 4

SelangorBranches 39ATMs 261

LabuanBranches 1ATMs 2

Population Density:

< 100 persons per km2

101-500 persons per km2

501-1,000 persons per km2

1,001-1,500 persons per km2

> 1,501 persons per km2

Commercial banking branches:

o 187 branches nationwide

- #61 in no. of branches

- 3 AmIslamic branches

o 888 ATMs- 404 ATMs (#1 provider of ATMs) at 7-Eleven

o 163 Electronic Banking Centreso 34 AmGeneral branches (include 4 dual branded

branches)o 18 AmLife office, 14 Agency officeo 14 AmInvestment officeso 26 MBF brancheso 4 Regional Business Centres (Penang, Johor,

Kuching, Kota Kinabalu)


AmInvestmentGroup Berhad

AmCorp Group Bhd,

16.4%

ANZ Funds Pty Ltd 1,

23.8%

EPF, 12.7%

Other shareholders,

47.1%

Foreign shareholding excluding ANZ

FY2010 FY2011 FY2012 FY2013

27% 27% 26% 29%

Solid shareholding structure & franchise value

As at 31 March 2013

AmLifeInsurance

Berhad


Capital Markets

100%

100%

100%Asset Management

100%

100%

100%

51%

Banking

Insurance

AmGeneralHoldingsBerhad2

AmFamilyTakaful Berhad

AmBank (M) Berhad

AmIslamic Bank Berhad

AmInvestmentBank Berhad

AMAB Holdings Sdn Bhd

100% MBF Cards (M’sia) Sdn Bhd

BonuskadLoyalty Sdn

Bhd

33.33%

100%

AmGeneralInsurance Berhad3

100%

1. ANZ: ANZ Funds Pty Ltd,a wholly owned subsidiary of Australia and New Zealand Banking Group Limited2. Formerly known as AmG Insurance Berhad3. Formerly know as Kurnia Insurans (Malaysia) Berhad

49%


Banking sector share price movement / target price and recommendations

Banking Sector Share Price Movement

132.9%

85.6%

82.7%

75.0%

44.2%

12.2%

30.6%

0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 140.0%

HLFG

RHB Cap

AMMB

PBB

CIMB

MBB

KLCI(Note: 18 May 2007 vs. 10 May 2013) Ratings FY2007 FY2013

AmBank (M) RAM A2/P1/Stable AA3/P1/Positive

Fitch BBB-/F3/Stable BBB/F3/Stable

S&P BBB-/A-3/Stable BBB+/A-2/Stable

Moody‟s Baa2/P-3/Stable/D- Baa1/P-2/Stable/D+1

AmInvestment RAM AA3/P1/Stable AA3/P1/Positive

Fitch BB+/B/Stable BBB/F3/Stable

S&P BB+/B/Stable BBB+/A-2/Stable

AmIslamic

RAM A2/P1/Stable AA3/P1/Positive

AMMB RAM NA A1/P1/Positive

Upgraded ratings

Target Price and Recommendations

TP: target price

Sell/Underperform/Fully valued/Reduce/UnderweightHold / Neutral / Market performBuy/Outperform/Overweight/Add

P/EPS : EPS annualized Apr 12 – Dec 12 P/BV : BV as at 31 Dec 12Source : Bloomberg as at 10 May 2013

1 BFSR - Banking Financial Strength Rating

KAF UBS NOMURA MBB RHB ALLIANCE TA BofAML KEN DEUT HLIB PIVB MACQ JP GOLDMAN S. MIDF DBS BNP SC CLSA CIMB AFFIN UOB HSBC CITI

+2

+1

+2

+2

+3

+2

+1 Notches of ratings upgrades

+1


Major investment banking deals clinched

Secondary Offerings IPO

Debt Capital Market

M&A

Sentoria Group Berhad

Market Capitalisation:RM 348.0 million

Principal Adviser, Managing Underwriter, Underwriter and

Placement Agent

February 2012

Eita Resources Berhad

Market Capitalisation:RM 98.8 million

Principal Adviser, Managing Underwriter, Underwriter and

Placement Agent

April 2012

China Automobile Holdings Parts Ltd

Market Capitalisation:RM 408 million

Principal Adviser, Lead Placement Agent and Managing Underwriter

January 2013

Dijaya Corporation Berhad

RM319.12 million

Rights Issue

Adviser

March 2013

Protasco Berhad

RM22.92 million

Private Placement

Sole Placement Agent

February 2013

Oldtown Berhad

RM64.35 million

Private Placement

Sole Placement Agent

December 2012

AmFirst REIT

RM213.60 million

Rights Issue

Adviser, Managing Underwriter and Sole

Underwriter

August 2012

Unconditional Take-Over Offer in Bonia

Corporation Bhd

October 2012

RM204.91 million

Freeway Team Sdn. Bhd.

FREEWAY TEAM SDN. BHD.

RM5.980 billion

Merger of Businesses of Kencana Petroleum and Sapuracrest Petroleum

May 2012

KencanaPetroleum

Berhad

Conditional Take-Over Offer in Pontian United

Plantations Berhad

September 2012

RM624.82 million

TSH Resources Berhad

RM 575 million

DRB-HicomBerhad

Disposal of Entire Business of Hicom

Power Sdn Bhd

December 2012

Unconditional Take-over Offer on Dunham Bush Holding Berhad

November 2012

RM2.10 million

Yantai Moon Group (Hong Kong)

LimitedStarhill Real Estate Investment Trust

RM1.31 billion

Acquisition of Marriott Hotels

comprising Sydney Harbour Marriott,

Marriott Melbourne and Marriott

BrisbaneNovember 2012

Khazanah Nasional Berhad

Joint Lead Manager

March 2013

RM740 Million

Government-GuaranteedSukuk under the RM20.0BilSukuk Programme

RM1,195 Million

Government-Guaranteed Sukuk Murabahah under the RM5,311 Million Sukuk Programme

Joint Lead Manager

Feb 2013

RM615 Million

Sukuk Musyarakahunder the MYR10.0 Billion

Sukuk Programme

Aman Sukuk Berhad

Joint Lead Manager

March 2013

Putrajaya Holdings Berhad

RM800 Million

RM3.0 Billion SukukProgramme

Joint Lead Manager

Feb 2013

DanaInfra Nasional Berhad

MYR8.0 billion Islamic

Commercial Paper / Islamic

Medium Term Note

Programme

Joint Lead Manager

Dec 12

RM1.5 Billion

Weststar Capital Sdn Bhd

RM900 Million

MYR900.0 MillionSukuk MudharabahProgramme

Principal Adviser, Lead Arranger and Lead Manager

Nov 12








5


94.1

0

20

40

60

80

100

120

140

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2008 2009 2010 2011 2012

BCI

27.5

41.6 43.3

30.8 29.6 27.0 28.2

33.1

39.0

23.4 22.1

25.5

31.8

27.4 30.1 31.1 29.8

21.3

17.2

26.6

3.7

15.8

0.3

4.2 2.7

0.8 3.6

(2.0)

5.6 6.5 6.5

10.7 11.1 10.2

5.2 6.5 7.5

6.1

9.6

5.9

-10

0

10

20

30

40

50


2008 2009 2010 2011 2012

Trade Balance FDI

RM' bil

6.4%

15.0%

0%

5%

10%

15%

20%

25%

30%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2010 2011 2012

GDP Consumption Investment

3.0%

1.6%

0%

5%

10%

Mar

Jun

Sept

Dec

Mar

Jun

Sept

Dec

Mar

Jun

Sept

Dec

Mar

2010 2011 2012 2013

Unemployment Rate CPI

Moderating growth CPI & unemployment rates remain low

FDIs remain robust

Sources : Bloomberg & BNM

GDP

Domestic consumption and investment continues to drive Malaysian economy

Slight deterioration in near term expectations

Business Conditions Index

4.8%

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

Feb‟13

27.5

41.6 43.3

30.8 29.6 27.0 28.2

33.1

39.0

23.4 22.1

25.5

31.8

27.4 30.1 31.1 29.8

21.3

17.2

26.6

3.7

15.8

0.3

4.2 2.7

0.8 3.6

(2.0)

5.6 6.5 6.5

10.7 11.1 10.2

5.2 6.5 7.5

6.1

9.6

5.9

-10

0

10

20

30

40

50


2008 2009 2010 2011 2012

Trade Balance FDI

RM' bil


10.1%

11.0%10.6%

5%

10%

15%


2010 2011 2012 2013

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

Domestic economy expected to be resilient

Interest rates expected to remain in the short term

4.70%

3.00%

6.53%

0%

5%

10%

15%

2006 2007 2008 2009 2010 2011 2012 2013

Average lending rate (commercial banks) Average OPR Average BLR

RM’mil

Stable household debt / GDP with sustainable loan application

Stable loans applications, softening loans approvalsLoans growth remains resilient

Source: BNM

To be updated for the his

-10.3%

-13.0%

-40%

-20%

0%

20%

40%

60%


2010 2011 2012

Loans application growth YoY Loans approved growth YoY

257.7 307.6 342.1 350.4

263.7 333.7

400.1 415.8

33.4% 34.2% 34.6% 31.9%

75.1% 75.8% 76.6%80.5%

-100

100

300

500

700

900

1,100

1,300

1,500

Retail loans application Non-retail loans application

Gross national savings Household debt/GDP

2009 2010 2011 2012


99.2%

1.3%

-2.0%

2.0%

6.0%

10.0%

14.0%

18.0%

80%

85%

90%

95%

100%

105%


2010 2011 2012 2013

Loan Loss Coverage Gross Impaired Loans

Source: BNM

Strong fundamentals in the banking sector

RM’bilCapital activities supported by debt issuance Sustained deposits growth provides liquidity

RM’mil

Asset quality remains intactCapital levels above BNM’s Basel 3 guidelines

Loan loss coverage Gross impaired loans

Improving gross impaired loans

78.3%

0

200

400

600

800

1,000

1,200

1,400

1,600


2010 2011 2012 2013

Total Deposits LD Ratio

0

5

10

15

20

25

30

35

40

45

50

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2010 2011 2012 2013

New issues of equity New issues of debt

14.5%

13.1%

0%

5%

10%

15%

20%

Mar

Jun

Sept

Dec

Mar

Jun

Sept

Dec

Mar

Jun

Sept

Dec

Mar

2010 2011 2012 2013

RWCA CORE CAPITAL



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

ETP OverviewFour Pillars of Malaysia’s National Transformation

ETP execution gaining momentum

• RM48k (USD15k) GNI per capita

• RM1.7 trillion GNI

• 6% annual GDP growth

GROSS NATIONAL INCOME

JOBS

• 31.6m population

• 3.3m additional jobs

TRANSFORMATIONAL ACTIONS

INVESTMENT

Focus Drivers:

• 12 NKEAs, 131 EPPs

• 60 Biz Opportunities

• Private-sector led

Competitiveness ‘Enablers’

• 6 SRIs & 51 Policy Measures

• RM1.4 trillion investment

• 92% private investment

• 8% public investment

• 73% DDI, 27% FDI

ECONOMIC TRANSFORMATION

PROGRAMME

Vision 2020

Preserving and enhancement of unity in diversity

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

Round 10(13 Sep 2012)

ROUND 1(25 Oct 2010)

ROUND 2(30 Nov 2010)

ROUND 3(11 Jan 2011)

ROUND 4(8 Mar 2011)

ROUND 5(19 Apr 2011)

ROUND 6(13 Jun 2011)

ROUND 7(8 Sep 2011)

Initiatives

Investment (RM’bil)

GNI Impact (RM’bil)

Job creation(‘000)

TO-DATE*

TARGET (2020)

% OF TARGET

ROUND 8(10 Nov 2011)

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

5.3 8.3 66.8 14.7 11.4 63.4 1.4 8.0 20.5 5.6 6.7 212.0 1, 400 15.0

0.1 84.5 32.5 20.1 16.6 66.3 8.4 6.7 4.6 2.4 1.1 137.6 1,700 14.8

13 70.5 52.4 88.3 74.4 63.5 10 16.9 39.9 18 40 411 3.3 mil 12.5

Round 9(28 May

2012)

Round 11(16 Nov 2012)

Effective delivery of government services

New Economic Model – high income, inclusive & sustainable nation

Smooth implementation of government’s development programme

1 Malaysia

People First, Performance Now

Government Transformation Programme

6 National Key Result Areas (NKRAs)

Economic Transformation Programme (ETP)

12 National Key Economic Areas (NKEAs)

10th Malaysia Plan

Macroeconomic growth targets & expenditure allocation

ETP : Economic Transformation ProgrammeSource : Pemandu


Malaysia remains an attractive investment destination

National Savings Rate(% of GDP)

Inflation (%)

GDP per capita (USD)

Malaysia Thailand Singapore Indonesia Philippines Vietnam

Source: World Economic Outlook Database April 2013

2012 2013f 2012 2013f 2012 2013f 2012 2013f 2012 2013f 2012f 2013f

5.6 5.1 6.4 5.9 1.3 2.0 6.2 6.3 6.6 6.0 5.0 5.2

10,304 10,946 5,679 6,572 51,162 52,179 3,592 3,817 2,614 2,918 1,528 1,705

3.0 3.0 0.5 0.7 2.0 2.0 6.2 6.1 7.0 7.0 4.5 4.5

31.9 32.4 30.6 30.9 45.6 44.6 32.6 32.3 22.3 22.5 30.7 30.7

1.6 2.2 3.0 3.0 4.6 4.0 4.3 5.6 3.1 3.1 9.1 8.8

6.4 6.0 0.7 1.0 18.6 16.9 -2.8 -3.3 2.9 2.4 7.4 7.9

-4.2 -4.0 -1.5 -2.9 5.5 5.1 -1.4 -2.8 -2.4 -2.1 N/A N/A

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

Unemployment (%)

Real GDP Growth, % YoY

ASEAN growth to remain robust but not immune to global economy challenges

Malaysia‟s growth to be driven by private investment (through ETP) as well as domestic consumption (supported by low inflation and unemployment)

Current account balance (% of GDP)

Government structuralbalance (% of GDP)

Population (mil)


Glossary / Disclaimer of warranty and limitation of liability

Reported PerformanceReported performance refers to the financial performance as reported in the audited financial statements and disclosed to the market

One OffsOne 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 PerformanceUnderlying performance refers to the financial performance adjusted for one off impacts as above

Business DivisionsBusiness 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 SegmentsOperating segments

• have more volatile and lumpy income streams, with the former a direct function of risk appetite • include

• income and expenses associated with shareholder funds, loan rehabilitation and legacy businesses, plus• costs associated with corporate, shared services and governance functions currently not charged back to the business units

The information provided is believed to be correct at the time of presentation. AMMB Holdings Berhad or AMMB Holdings or “AMMB” or its affiliates do not make any representation or warranty, express or implied, as to the adequacy, accuracy, completeness or fairness of any such information and opinion contained and shall not be liable for any consequences of any reliance thereon. Neither AMMB Holdings nor its affiliates are acting as your financial advisor or agent. The individual is responsible to make your own independent assessment of the information herein and should not treat such content as advice relating to legal, accounting, and taxation or investment matters and should consult your own advisers.

Forward looking statements are based upon the current beliefs and expectations of the AMMB Holdings and are subject to signif icant 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 securitie s. 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 r egard 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 pe rsons.

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.

Disclaimer of Warranty and Limitation of Liability


The material in this presentation is general background information about AmBank Group’s activities current at the date ofthe presentation. It is information given in summary form and does not purport to be complete. It is not intended to be reliedupon as advice to investors or potential investors and does not take into account the investment objectives, financialsituation or needs of any particular investor. These should be considered, with or without professional advice when decidingif an investment is appropriate.

For further information, visit :

www.ambankgroup.com

Ganesh Kumar Nadarajah

Group General Manager, Group Investor Relations and Planning

Karen Chuah

Manager, Group Investor Relations and Planning

Tel : +603 2036 1435 Fax : +603 2031 7384 e-mail : [email protected] or

+6019 2093955 [email protected] or

[email protected]

http://www.ambankgroup.com/

mailto:[email protected]






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