AMMB Holdings Berhad - AmBank...AMBANK GROUP –GROUP INVESTOR RELATIONS & PLANNING –INVESTORS...

1AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2013

AMMB Holdings Berhad

Ashok RamamurthyGroup Managing Director

Investors PresentationQ1 FY2013 Results, 14 August 2012

AmBank Group


1. Executive summary

2. Q1FY2013 Group Financial Performance

3. Outlook

4. Divisional Strategy & Performance

5. Supplementary Information

o Strategies in more detail

o Economic landscape

o Strategic partnerships

o Others



Scale & Presence

1. AmG Insurance Berhad, a 51%-owned subsidiary of AMMB, has entered into a conditional sale and purchase agreement with Kurnia Asia Berhad for the proposed acquisition of a 100% equity interest in Kurnia Insurans (Malaysia) Berhad on 12 April 20122. .AMMB Holdings Bhd has on 10 July 2012 entered into a conditional share sale agreement for the proposed acquisition of MBF Cards (M’sia) Sdn Bhd

Reposition and Build

New Growth Options

Aggressively Invest, Optimise

& Leverage Connectivity

ImproveReturns

Grow retail assets

Lead in investment banking business

Leverage fixed income trading

3 Focus areas:

Strategic Business Transformation

High priority growth initiatives

Organisation and governance structures

Q1 FY2013

PATMI up 4.6%, ROE of 15.9%(MFRS 139 adopted)

Net loans growth up 7.2%, strong CASA growth of 34%, LDR healthy at 89%

Acquisitions of Kurnia1 and MBF Cards2 in progress

5th consecutive year of record performance

Consistent & broad based revenue growth

Improved balance sheet & funding mix

Dividend payout: 40.1%

Pursue niche acquisitions such as Kurnia1


FY2013 - 15

Accelerate growth and business mix changes

Strengthen customer centricity and connectivity

Increase productivity and efficiency

Acquire & integrate in-fill acquisitions & strategic tie-ups

“As Malaysia’s preferred diversified, internationally connected financial solutions group, we take pride

in growing your future with us”

AmBank Group’s Vision


Q1FY2013 results in line with full year expectations

PATMI#

EPS (basic)

ROA

ROE

Performance

* Performances integrated to divisional outcomes1 CAGR computed based on FY2007 underlying profit of RM556.9 million.2 Not annualised3 Previously reported under transitional provisions

^ Restated with retrospective application of MFRS, where applicable# PATMI: profit after tax and non controlling interests

Transaction* Islamic*

+5.2% +23.1%Q1FY13 vs Q1FY12^ PATMI growth

Retail Banking: stable performance (highly competitive environment), focus on liabilities

Business and Corporate & Institutional Banking: strong income and lower impairments underpinned growth

Investment Banking & Markets: subdued performance despite similar volume compared to Q1FY12 which partly benefitted from exceptional large deals and large trading income

P

Divisional growth

Retail BusinessCorporate & Institutional

Investment Markets Life General

-3.5% +30.1% +31.2% -43.1% -53.5% +27.0% -4.6%

Q1FY2013 – sustainable profitability

Improved net-interest income despite more competitive pricing in selected segments

Credit quality improving with lower charge offs/allowancesP

YoY Change Q1FY12 Q1FY11 ∆% Q4FY11 FY11

CAGR(FY07-11)

448.6 mil 429.0 mil 4.6% 341.8 mil 1,510.8 mil 1,476.6 mil 21.51

15.9% 16.5% 0.6% 12.6% 14.1% 13.8% 3.9%

1.64% 1.63% 0.01% 1.30% 1.43% 1.39% 0.31%

15.02 sen 14.32 sen 0.7 sen 11.42 sen 50.5 sen 49.4 sen 13.41

Q1FY13Q1FY12^(restated)

∆%Q4FY12^(restated)

FY123

(previously reported)FY12^

(restated)

CAGR^(FY07-12)


Gross impaired loans

Reported

LD Ratio3

CTI

Consistently strong deposits growth, funding and risk profiles

Net Lending1

CASA

Adjusted Customer Deposits2

Growth

Risk, Capital & Funding Profile

Loans growth targeting profitable & viable segments

Strong CASA growth via expanded product and service offerings

Implementing customer segmentation to enhance share of wallet and increase cross-sellingP

Proactive & consistent risk management

Capital levels positioned for BNM’s Basel 3 guidelines

Continued investments to build capacity for growthP


∆%FY12^

(restated)CAGR^

(FY07-12)

78.0 bil 72.8 bil 7.2% 75.6 bil 8.5%

14.3 bil 10.7 bil 33.9% 13.0 bil 19.6%

87.9 bil 83.6 bil 5.1% 84.4 bil 13.0%


∆%FY12^

(restated)

2.38% 2.96% 0.58% 2.45%

15.1% 13.7% 1.4% 15.7%

15.5%4 14.1%4 1.4% 15.7%

10.8% 9.7% 1.1% 11.3%

11.3%4 10.1%4 1.2% 11.3%

88.8% 87.0% 1.8% 89.5%

41.1% 39.2% 1.9% 40.6%

^ Restated with retrospective application of MFRS, where applicable1 Includes Islamic loans sold with recourse2 Adjusted customer deposits include term funding and loans sold with recourse

3 Based on net loans including loans sold with recourse over adjusted customer deposit4 Estimated capital ratios include Q1FY12/Q1FY13 unappropriated profits of AmBank (M) Bhd, AmIslamic Bank Bhd & AmInvestment Bank Group

includes unappropriated profits

RWCAR

Reported

includes unappropriated profits

Tier 1 CAR


• Execute program to strengthen brand positioning in affluent segments

• Develop core ‘customer centric’ capabilities across the Group

• Centralize functions to improve customer experience via reengineering and process automation

• Optimize operating and support segments to deliver productivity and efficiency gains, maintaining top tier CTI

• Continue building ‘outperformance culture’, retain and attract best talent

• Commence AmG-Kurnia and MBF Cards integration and delivering on synergies & benefits

• Domestic demand is expected to remain stable whilst anticipating slowdown in export performance in line with slower global growth

• Incentives & plans provided under the 2012 Budget are expected to spur private consumption

• Malaysia’s GDP 2012f to experience growth of circa 4.5%, not immune to external challenges (Euro debt crisis & lower exports), inflation to moderate to 2.0 – 2.5%

What is ahead…

Malaysia:

Remain resilient

• Rollout of ETP to support lending and capital market activities

• New Responsible Lending Guidelines will moderate consumer loans growth

• Ongoing competition for loans and deposits will continue to impact margins

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

• OPR expected to remain at current 3% throughout 2012

Banking:

Some challenges

Accelerate Growth & Business Mix Changes

Strengthen Customer Centricity & Connectivity

Increase Productivity & Efficiency

Acquire & Integrate

AmBank Group:

Execute to Strategic Priorities

• Accelerate execution of Retail reshaping programme and grow main bank relationships

• Grow Transaction Banking and Markets businesses for non-interest income

• Enhance focus on AmLife transformation to deliver growth, complemented by AmTakaful

• Uplift ANZ International Connectivity via joint account planning / aligned pricing and propositions to customers

• Targeting increased investments in growth, productivity and infrastructure to support MTA

Update since FY2012 Investors Presentation highlighted in blue and italics


Proposed acquisition of MBF Cards: strengthens acquiring and issuing business

Proposed Acquisition & Considerations Strategic Fit for AMMB

In line with AMMB’s Vision & strategic priorities

o Targeted growth from profitable segments

o Accelerate growth from recurring non-interest income

o Provides for CASA growth & cross-selling opportunities

Creates Top 3 merchant acquiring business and strengthens issuing business

o Increased and diversified customer base and reach

o Enlarged and complimentary merchant force

o Access to scale and synergistic benefits

Leverage on combined network and additional products & services

Funded by internal funds & borrowings; EPS accretive within 12 – 18 months from acquisition

P

P

P

Improved profitability, scale & growth opportunities

Attractive ROE business

Full control over Line Of Credit interest

Enlarged issuance business & merchant network

o Combined card receivables of RM2.3 bil, strengthen #6 market position

o Creates Top 3 (up from #11) merchant acquiring business with >45,000 merchant-in-force

Economies of scale

Enhanced customer base

o potential access to 7 mil Bonuslink cardholder base & 3 mil merchant pool

CASA growth

P Proposed acquisition of 100% equity of MBF

Cards (M’sia) Sdn Bhd, which includes:

o 33.33% equity of Bonuskad Loyalty Sdn Bhd

o Name & logo of “MBF Cards”

o Customer & merchant base

Total cash consideration of RM623.4 mil (with goodwill of RM411.1 mil), subject to final adjustment

BNM and vendors1’ shareholders’ approval required, completion expected before end 2012

MBF Cards (M'sia) Sdn Bhd

Bonuskad Loyalty Sdn Bhd


100%

33.33%

1. 51% directly owned by MBf Holdings Berhad and 49% through MBf Holdings Berhad’s wholly owned subsidiaries – Atox Cards Sdn Bhd (11.55%) and Jastura Sdn Bhd (37.45%)


Proposed acquisition of Kurnia: Creates largest general & motor insurer in Malaysia

Proposed Acquisition & Considerations Strategic Fit for AMMB

In line with AMMB’s Medium Term Aspiration & strategic priorities

o Stronger income growth from profitable segments

o Accelerate recurring non-interest income growth rate

o Provide opportunities for cross-selling

Provides AmG with immediate access to scale benefits

o Number 1 position in General & Motor insurance

o Substantive cost-synergies & supply chain efficiencies

o Provide cross-selling opportunities across customer base of 4 million policyholders

Customers & business partners will gain access to AMMB’s distribution footprint, alternative channels and the Group’s full suite of financial products and services

Leveraging on Insurance Australia Group’s international expertise and regional support

P

P

P

Significant Benefits to AmG

Creates largest General & Motor Insurer in Malaysia

o Combined GWP > RM1.7B, with market share of 13% (up from 5%)

o Clear #1 Motor Insurer with market share of 22% (up from 8%)

Diversify & enlarge channels & footprint with a combined agency force of >7,000

Improve product development capabilities & operational efficiency

Leverage well-recognised, industry-leading brands

~4 million policyholders provides greater cross-sell opportunities

P

ScaleAdvantage

Product & ChannelDiversity

GrowthOpportunities

*As at 30 June 2011

Proposed acquisition of 100% equity of Kurnia Insurans (Malaysia) Berhad by AmGInsurance Berhad, which includes:

o Kurnia’s Malaysian insurance operations & distribution network

o “Kurnia” brand & customer base

o Net assets of RM757 million*

Total cash consideration of RM1.55 billion (AMMB will contribute 51% : ~RM790 mil)

Kurnia shareholder approval obtained, completion expected by 3Qtr CY2012



Investors PresentationQ1 FY2013 Results, 14 August 2012

AmBank Group

Mandy SimpsonChief Financial Officer



2. FY2012 Group Financial Performance

3. Outlook






o Others



PATMI Q1FY12* Net interest incomeNon Interest Income Total income Expenses PBP Impairments PBT Taxation & zakat PAT Minority interests PATMI Q1FY13

PATMI FY11 Net interest incomeNon Interest Income Total income Expenses PBP Impairments PBT Taxation & zakat PAT Minority interests PATMI FY12

12.2% 93.0% 2.6% 28.2%

448.6 mil

4.6% 8.1% 2.1% 5.2% 5.9% 5.1%

429.0 mil

PATMI*Q1FY12

Net Interest Income

Non-Interest Income

Total income Expenses PBPProvisions/Allowances

PBT Tax & Zakat PAT MIPATMI*Q1FY13

Q1FY13 (RM’mil)

696.8 368.5 1,065.3 437.6 627.7 5.2 622.5 160.7 461.8 13.2

Q1FY12^(RM’mil)

668.8 419.8 1,088.6 426.4 662.2 74.3 587.9 148.6 439.3 10.3

4.2%

Q1 FY13 PATMIQ1 FY12 PATMI Positive growth in Q1 FY13 Contraction in Q1 FY13

* PATMI: profit after tax and non controlling interests ^ Restated with retrospective application of MFRS, where applicable

Higher net interest income and lower allowances underpinned Q1FY2013 results

Higher non interest income in Q1FY12 due to large trading income

Ongoing medium term investments in infrastructure but well within CTI targets

Bad debts recovered and lower allowances


PATMI Q1FY12 Retail banking Business banking Corporate &Institutional

InvestmentBanking

Markets Life Assurance General Insurance OperatingSegments

PATMI Q1FY13

Diversified divisional contributions via targeting more profitable segments

31.2% 53.5% 4.6%43.1% 4.6%27.0% 23.1%

* Performances reflected within divisional outcomes ̂Restated with retrospective applications of MFRS, where applicable

1. Life Assurance surplus is transferred into life policy shareholders’ fund in overall Group accounts

2. Includes expenses for recently set-up AmFamily Takaful business

84%

3.5% 30.1% >100.0% 5.2%

PATMI (by division)

PATMI*Q1 FY12

Retail BusinessCorporate & Institutional

Investment MarketsLife

Assurance1

General Insurance

Operating Segments

Transaction* Islamic*

PATMI*Q1 FY13

% of Composition

30% 25% 20% 5% 9% 1% 5% 5%

Q1 FY13 (RM’mil)

134.3 111.5 89.9 24.4 39.2 3.0 21.4 24.92 46.3 71.5

Q1 FY12^ (RM’mil)

139.2 85.7 68.5 42.9 84.3 2.3 22.4 -16.3 44.0 58.1

Conventional PATMI Islamic PATMI

* PATMI: profit after tax and non controlling interests

Positive growth in Q1 FY13 Contraction in Q1 FY13

# Restated with retrospective application of MFRS, where applicable

Income impacted by securities revaluation and large trading income in Q1FY12

429.0 mil

87%

13%

448.6 mil

84%84%

16%


o No change

o Probability of default

- Non retail: facility by facility basis

- Retail: A pool of homogeneous assets with more granular definitions

o Loss Given Default

Actual historical recoveries are used and incorporates discounting factor

o Model risk adjustments

Covers possible model risks within each component of the CP model

o Macro risk adjustment

Enhanced to cover impact from economic portfolio and procedural issues incurred but not reflected in the provisions yet

o Exposure at Default

Actual historical experience

o New basis of PD & LGD applies (as above)

o Only life insurance contract liabilities with discretionary participation features (DPF) are presented as a liability in the statement of financial position

o Non-DPF fund surplus and related Non-DPF reserves are classified as equity

o Individual significant loans are assessed using the discounted cashflowmethod for individual provisions

o Loans which are individually assessed but where no individual provisions required will be collectively assessed

o Probability of default (PD)

- Non retail: weighted portfolio

- Retail: flow rate methodology with PD computed based on MIA buckets

o Loss Given Default (LGD)

Combination of interest in suspense, specific provision, write-offs and recoveries as proxy for losses

o Model risk adjustment

Covers only PD models

o Macro risk adjustment

Based on impact of macro economic events incurred but not reflected in provisions yet

o Exposure at Default (EAD)

Basel 2 credit conversion factor (CCF)

o PD & LGD as above applies

o Life insurance contract liabilities are presented as a liability in the statement of financial position

Changes in Accounting Policy – Full Adoption of MFRS

Full Adoption of MFRS

PD: Probability of Default; LGD: Loss Given Default; CP: collective provisioning

Individual Allowance (FRS 139)

Collective Allowance (MFRS 139 full compliance)Collective Allowance (FRS 139 Transitional Provision)

Previous Guidelines of Life Insurance contract Liabilities

Provision for commitments & contingencies (Off B/S)

Revised BNM Guidelines on Financial Reporting (Insurers)

Individual Allowance (MFRS 139 full compliance)

Provision for commitments & contingencies (Off B/S)

Prior Applications of MFRS


3,816.2

3,664.3 4,105.8

37.0 90.9

0.5 73.3 48.8

448.6

7.0

Retained earnings @ FY12 (transitional

provision)

Collective allowance Provision for commitments &

contingencies (off balance sheet)

General insurance Life funds Tax & others Retained earnings @ FY12 (restated)

Profit for the period Executives' Share Scheme & profit

equalisation reserve

Retained earnings @ Q1FY13

2,011.8 2,048.8 2,071.6

37.0 -

161.6 138.8

Collective allowance @ FY12 (transitional provision)

Effect of change in accounting policy

Collective allowance @ FY12 (restated)

Allowance made during the period

Amount written off Collective allowance @ Q1FY13

Impact of full adoption of MFRS

Collective allowance (RM’mil)

Retained earnings (RM’mil)

Greater consideration of accounting issues under MFRS for commitments & contingencies

Conservative provision via transitional method, offset by:1) More detailed assessment of allowance for model risk & scenario modeling adjustments2) conservative assessment of potential impacts from global economiy

Revision in BNM guidelines

Redesignationof securities portfolio


610.3 674.3 701.6

193.8 194.4

288.1 302.4

562.2

1.4 1.9 132.6

123.7 172.0

146.5

0.7 36.1

18.2 21.6

21.7

3.5 55.2 5.4

FY10 FY11 FY12 Q1FY12* Fee Income Trading & Investment Insurance Business Others Q1FY13

187.834.7

Non-interest income movement

Note :1 Net Interest Margin includes Net Financing Income from Islamic Banking business 2 FY10-Q1FY13 based on internal data computation

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

NIM and Cost of Funds

Cost of Fund NIM OPR SRR

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

Stable NIM within expectations

Higher trading & investment income in Q1FY12 due to one-off gains on disposal of securities portfolio

FY10 FY11 FY12^ Q1FY12^ Fee IncomeTrading &

InvestmentInsuranceBusiness

Others Q1FY13

As % of total income

29% 30% 34% 39% 35%

53%

36%

1%

10%

12.2%

1,432.01,040.3 1,170.2 368.5 0.3% 29.4% 3.9% 53.4%RM’mil

Fee Income Trading & Investment Insurance Business Others

419.8

^ Restated with retrospective application of MFRS, where applicable

FY10 FY11 FY12^ Q1FY13 Q1FY12^ Q2FY12^ Q3FY12^ Q4FY12^ Q1FY13

COF

NIM

SRR

OPR

NIM 2 bps

COF 6 bps

SRR

OPR3.00% 3.00% 3.00% 3.00% 3.00%

2.00%

4.00% 4.00% 4.00% 4.00%

Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13

OPR SRR

2.25%2.75% 3.00% 3.00%

1.00% 1.00%

4.00% 4.00%

FY10 FY11 FY12 Q1FY13

OPR SRR

2.68%

2.92%

3.15% 3.15% 3.15% 3.19% 3.20% 3.21% 3.15%2.98% 2.94%

2.73% 2.71% 2.66% 2.71%2.85%

2.73% 2.71%


Cost of funds NIM

NIM

COF

2.68%

2.92%

3.18% 3.15% 3.15% 3.19% 3.20% 3.21% 3.15%2.98% 2.94%

2.73% 2.71% 2.66% 2.71%2.85%

2.73% 2.71%


Cost of funds NIM

NIM

COF

Sales: 20%Trading: 34%Others: 46%


3.182.02 1.50 1.01

5.53

3.602.43

1.87 2.54 2.45 1.91 1.91

56.6%67.3%

75.1%

99.5%114.5%

116.3%

FY2007 FY2008 FY2009 FY2010 Day 1 FY2011 FY2012 Q1FY2013

Net NPL Gross NPL Gross Impaired Loans Loan Loss Coverage Allowance Coverage (MFRS 139)

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%


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

Superior asset quality ratios, adopted MFRS 139

Asset Quality Indicators

MFR

S 1

39

GP

3

143bps

43bps

RM’bil

MFR

S 13

9

GP

3

Allowance Coverage:• Retail Bkg: 82.3%• Business Bkg: 123.6%

Gross Impaired Loans• Retail Bkg: 2.69%• Business Bkg: 1.62%

3.182.02 1.50 1.01

5.53

3.602.43

1.87 2.54 2.45 1.91 1.91

56.6%67.3%

75.1%

99.5%114.5%

116.3%


Net NPL Gross NPL Gross Impaired Loans Loan Loss Coverage Allowance Coverage (MFRS 139)

Loan Loss Charge FY12

Transitional provisions 0.56%

MFRS 139 0.51%

Allowance Coverage FY12

Transitional provisions 112.6%

MFRS 139 114.5%

FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 Q1FY13Day 1

[1 April 10]

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%


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


0.00%

0.50%

1.00%

1.50%

2.00%

Q1 Q2 Q3 Q4

% Write-Offs to Avg Gross Loans

0.00%

0.60%

1.20%

1.80%

Q1 Q2 Q3 Q4

% New Gross NPL / Gross Impaired Loans to Gross Loans

Note :

1 FY2004 and FY2005 financials based on gross before IIS

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

New gross impaired loans formation within expectations

Impairments caused by a previously restructured Business Banking loan

Prudently accelerated write-offs of partial provisions post system enhancements

0.00%

0.40%

0.80%

1.20%

Q1 Q2 Q3 Q4

% Gross NPL / Impaired Loans Conversion to Gross Loans

0.00%

0.20%

0.40%

0.60%

Q1 Q2 Q3 Q4

% Recoveries to Avg Gross Loans

0.00%

0.60%

1.20%

1.80%

Q1 Q2 Q3 Q4


FY2004-FY2007 FY2008-FY2010 FY2011

FY2012 FY2013

GP 3

FY2004 -FY2007 FY2008-FY2010 FY 2011

MFRS 139

0.00%

0.60%

1.20%

1.80%

Q1 Q2 Q3 Q4


FY2004-FY2007 FY2008-FY2010

FY2011 Q1FY2012FY2012


Gross LoansQ1FY12

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

Corporate &Institutional

Banking

Others Gross LoansQ1FY13

Maintaining faster loans growth in non-retail

Gross Loan1 / Financing1 movement

Retail Non-Retail

3.5% 10.9%

75.4bil

6.1% 6.8% 18.2%

7.0%

11.6% 5.9%

-26.7% 80.2bil

41%

59%

6.4%

40%

60%

Gross LoanQ1 FY12

Auto Financing

Mortgage Credit Cards Line of Credit Co-OpAsset

FinancingBusiness

Corporate & Institutional

OthersGross Loan

Q1 FY13% of

Composition31.4% 19.1% 1.3% 0.9% 2.4% 3.6% 21.1% 19.0% 1.2%

Q1 FY13 (RM’bil)

25.2 15.3 1.1 0.7 1.9 2.9 17.0 15.2 1.0

Q1 FY12 (RM’bil)

24.3 14.4 1.0 0.8 2.2 2.7 14.3 14.2 1.4

10.8%

No

n-re

tailR

etail

3.4%

Non-RetailRetail1 Including Islamic financing sold to Cagamas

Total Fixed interest rate Variable interest rateMar-08 Jun-12 Mar-08 Jun-12 Mar-08 Jun-12

Conventional 82% 76% 47% 28% 38% 48%Islamic 18% 24% 15% 15% 0.1% 9%

100% 100% 62% 43% 38% 57%

Loan portfolio trends:

Positive growth in Q1 FY13 Contraction in Q1 FY13


-

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

13.9% 15.0% 14.0% 14.6% 14.5%

77.0% 77.4% 74.3% 73.8% 74.6%

0.7% 1.5% 6.9% 6.9% 6.7%1.0% 1.2% 0.6% 0.8% 0.6%

7.4% 4.9% 4.3% 3.9% 3.5%

FY09 FY10 FY11 FY12 Q1FY13

Improving funding composition

Shareholders' Equity & Debt Capital Deposits from CustomersTerm Funding &loans sold with recourse > 1 yr Term Funding & loans sold with recourse < 1 yrDeposits from Banks and FIs

Lengthening debt capital & term funding profile

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

81.384.4

87.9

70.765.2

Funded assets financed by equity, customer deposits and longer-term debt:

• Q1FY13 = 95.9%

• FY12 = 95.3%

• FY11 = 95.2%

• FY10 = 93.9%

• FY09 = 91.6%

Issued RM2.92 bil Senior Notes (RM7 bilprogram) and RM550 mil Senior Sukuk(RM3 bil program) since early 2010

Raised RM800 mil Subordinated Sukuk(RM2 bil program) since Sept 2011

Improved stable funding with well distributed debt maturities

95.3% 95.9%

2.5 3.0 8.0 9.0 8.8 [10.0%]

25.5 26.829.7 30.5

31.4[35.8%]

26.329.6

27.435.4

39.8[45.2%]

10.911.2

16.3

9.4

7.9[9.0%]

FY09 FY10 FY11 FY12 Q1FY13

Diversify funding

Term funding Individuals Biz enterprises Government

RM'bil


ROE ROA

EPS, BasicSen/Share

Dividend, GrossSen/Share

Delivering consistent growth in shareholders’ returns

^ Restated with retrospective application of MFRS, where applicable

* Not annualised

FY09 FY10 FY11 FY12 FY12^ Q1FY13 FY09 FY10 FY11 FY12 FY12^ Q1FY13 (restated) (restated)(Previously

reported)(Previously reported)

FY09 FY10 FY11 FY12 FY12^ Q1FY13 FY08 FY09 FY10 FY11 FY12 FY12^(restated) (restated)(Previously

reported)(Previously reported)

1.04% 1.13%1.39% 1.43% 1.39%

1.64%

31.6sen

34.7sen

44.7sen

50.5sen

49.4sen

15.0sen*

6.0 sen

6.6sen

6.6sen

6.0sen

8.0sen

10.5sen

12.0sen

13.5sen

13.5sen

18% 20%

28%

40% 40% 41%

Interim Dividend Final Dividend Dividend Payout Ratio

11.7% 11.5%13.6% 14.1% 13.8%

15.9%


by Legal Entities2

Pro-forma AmBank Group Banking Entities^

Tier 1 CAR RWCAR

AmBank (M) Berhad 9.7% 14.0%

AmInvestment Bank Berhad 21.9% 21.9%

AmIslamic Bank Berhad 8.4% 14.1%

Capital adequacy :

Capital adequacy

Efficient capital levels & well positioned for BNM’s Basel III & targeted payouts

* Banking entities include AmBank (M) Berhad Group, AmInvestment Bank Group and AmIslamic Bank

1: Double leverage ratio computed based on AMMB Holdings Bhd Company level

2. Q1FY13 (after deducting proposed dividend)

3. Estimated capital ratios include Q1FY13 unappropriated profits of AmBank (M) Bhd, AmInvestment Bank and AmIslamic Bank

Double leverage ratio1 0.99x

Balance Sheet leverage ratio (total equity net of deferred tax & intangible assets over total

assets net of deferred tax & intangible assets)

8.7%

Total leverage ratio (total equity net of

deferred tax & intangible assets over total assets net of deferred tax & intangible assets& Off Balance Sheet )

6.7%

Estimated capital ratios3

(include Q1FY13 unappropriated profits)

Risk AppetiteFramework Targets

RWCAR: 15.5% 14.3% ± 1%

Tier 1 CAR: 11.3% 10.3% ± 1%

CET 1 Ratio: 9.3% 8.3% ± 1%

7.7%* 8.1%* 8.0%*9.2%

9.7%10.3% 10.2%

11.3%

15.2%15.8%

14.4%15.7%

FY2009 FY2010 FY2011 FY2012

CET 1 Ratio Tier 1 CAR RWCAR* include preference shares CET 1 ratio 1 Tier 1 CAR 1 RWCAR1

7.7%* 8.1%* 8.0%*9.2% 8.9%

9.7%10.3% 10.2%

11.3% 10.8%

15.2%15.8%

14.4%15.7%

15.1%

FY2009 FY2010 FY2011 FY2012 Q1FY2013

CET 1 Ratio Tier 1 CAR RWCAR* include preference shares




3. Outlook






o Others

3. Outlook


FY08 FY09 FY10 FY11FY12

(restated)^ Q1FY13MTA**

FY13 - FY15

PATMI*(RM’mil)

ROE (%)

CTI (%)

Net NPL ratio /Gross

impaired loans (%)

Dividend:Gross/single-

tier (sen)Payout (%)

MTA estimates

668.5 860.8 1,008.6 1,342.8 1,476.6 448.6

11.5% 11.7% 11.5% 13.6% 13.8% 15.9%

40.2% 43.3% 42.0% 39.9% 40.6% 41.1%

3.7% 2.6% 1.5%

3.81% 3.33% 2.45% 2.38%

6.0 sen /

share

18%

8.0 sen / share

20%

10.5 sen / share

28%

18.0 sen / share

40%

20.1 sen / share

41%

N/A

Actual

9 – 12% CAGR

14 – 15%

≤43%

≤2.50%

40-50%Payout

Estimates

Other FY2013 estimates

• NIM expected to contract 10 – 15bps

• Loan loss charge expected to be lower circa 40 – 45 bps

• Loans growth expected to grow @ 8 – 9%

• LD ratio expected to maintain at ~90%

• CASA composition at 16 – 18%

• Non-interest income as a percentage of total income at circa 35%

• Retail : non-retail loan portfolio at approximately 60 : 40

• Target CET 1 of 8.3% (±1%), Tier 1 of 10.3% (±1%), RWCAR of 14.3% (±1%)

*PATMI: profit after tax and non-controlling interests** Medium Term Aspiration (MTA)

23AMBANK GROUP – GROUP INVESTOR RELATIONS & PLANNING – INVESTORS PRESENTATION Q1FY2013 ^ Restated with retrospective application of MFRS, where applicable


1. Moderate Q1FY2013 results but on track to achieve full year estimates

2. Recent acquisitions (Kurnia & MBF Cards) to drive synergistic benefits progressively

3. Incentives under 2012 Budget and ETP expected to sustain domestic growth over the medium term

4. AmBank Group aims to aggressively invest, optimize and leverage connectivity to deliver growth over the next 3 to 5 years

5. We remain committed to our FY2013 – 2015 strategic priorities:

Accelerate growth and business mix changes

Strengthen customer centricity and connectivity

Increase productivity and efficiency

Acquire & integrate in-fill acquisitions and strategic tie-ups

Summary





3. Outlook

4. Divisional Performance





o Others



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 Banking Service

Providerin 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 leadingpersonal 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


PATPBPExpensesIncome

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

Composition to Group 45.4% 40.9% 29.1%42.7%

Continued focus on targeted segments

Risk based pricing improving asset quality and lowering impairments

Steady growth in CASA up 16.3%

Increase focus in wealth management and recently introduced Signature Priority Banking

Q1FY12 results Positive growth in Q1FY13 Contraction in Q1FY13

* Restated with retrospective application of MFRS, where applicable

Retail Banking: Stable performance (highly competitive environment), focus on liabilities

Q1FY13 vs RM'mil Q1FY12* Q1FY13 Q1FY12

Income 462.8 455.3 -▼ -1.6%

Expenses 195.9 198.7 ▲ +1.4%

PBP 266.9 256.6 -▼ -3.9%

Impairments 81.4 77.5 -▼ -4.8%

PBT 185.6 179.1 -▼ -3.5%

PAT 139.2 134.3 -▼ -3.5%

Gross Loans / Financing 45,437.9 47,047.0 ▲ +3.5%

Gross Impaired Loans 2.69% 1,294.8 1,266.0 -▼ -2.2%

Customer Deposits 34,173.5 34,716.0 ▲ +1.6%

CASA Deposits 8,034.1 9,341.5 ▲ +16.3%

ROA 1.24% 1.16% -▼ -0.08%

CTI 42.3% 43.6% ▲ +1.3%

Allowance Coverage 83.0% 82.3% -▼ -0.7%


Higher income underpinned by diversified growth in asset base and fee income growth

Strong CASA growth

Expenses PBP PATIncome

Composition to Group 14.1% 6.1% 19.6% 24.1%

Income mix for Q1FY13

Business Banking: Good income and lower impairments underpinned profit growth

Growing the business through decisive execution



Lending & deposits,

97.7%

Trade Services,

1.8%

Others,0.5%

RM'mil Q1FY12* Q1FY13

Income 135.6 149.9 ▲ +10.5%

Expenses 26.4 26.6 ▲ +0.8%

PBP 109.2 123.3 ▲ +12.9%

Impairments (4.8) (25.1) -▼ ->100.0%

PBT 114.0 148.4 ▲ +30.2%

PAT 85.7 111.5 ▲ +30.1%


Gross Impaired Loans 1.62% 231.9 275.4 ▲ +18.8%


CASA Deposits 1,909.6 2,289.1 ▲ +19.9%

ROA 2.53% 2.79% ▲ +0.26%

CTI 19.5% 17.8% -▼ -1.7%

Allowance Coverage 199.2% 123.6% -▼ -75.6%

Q1FY13 vs

Q1FY12


RM'mil Q1FY12* Q1FY13 Q1FY12

Income 94.0 134.6 ▲ +43.2%

Expenses 19.0 20.4 ▲ +7.4%

PBP 75.0 114.3 ▲ +52.4%

Impairments (13.9) 0.9 ▲ +>100.0%

PBT 88.9 113.3 ▲ +27.4%

PAT 68.5 89.9 ▲ +31.2%



ROA 1.93% 2.28% ▲ +0.35%

CTI 20.3% 15.1% -▼ -5.2%

Ave Assets Management 1,501.5 1,668.0 ▲ +11.1%

Q1FY13 vs

G

G

G

G

Income Expenses PBP PAT

Diversified loans portfolio leading to good income growth.

Focused on growing share of wallet in key segments driving income growth

Good loans and deposits growth

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

Corporate & Institutional Banking: Strong income underpinned performance



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


Lending & deposits,

82%

Int. Biz, 7%Asset Mgmt,

12%



Debt Cap Mrkt,

8%

Corporate Finance,

15%

Equity, 2%

Broking & Futures,

23%

Fund Mgmt,

34%

Private Banking,

7%

Int Biz, 10%


Investment Banking: Subdued performance compared to Q1FY12, expected to pick up in 2HFY13

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



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


• Strong income contribution from funds management and CF, partly offset by lower income from DCM due to several larger debt issuances last year

• Decline in stock broking contributions due to uncertain sentiments affecting the equity market



Income 119.7 89.7 -▼ -25.1%

Expenses 62.8 57.5 -▼ -8.4%

PBP 56.9 32.2 -▼ -43.4%

Impairments (0.8) (1.1) -▼ -37.5%

PBT 57.7 33.3 -▼ -42.3%

PAT 42.9 24.4 -▼ -43.1%

CTI 52.5% 64.1% ▲ +11.6%

* Ave Assets Management 29,933.9 34,875.1 ▲ +16.5%

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

Bursa M'sia 72,791.5 67,722.7 -▼ -7.0%

Future KL index (FKLI) 384.9 404.6 ▲ +5.1%

* IB Broking 4,464.5 4,341.2 -▼ -2.8%

* AmFuture - FKLI 71.7 34.5 -▼ -51.9%

Market Share as at:

* IB Broking 6.1% 6.4% ▲ +0.3%

* AmFuture -FKLI 16.0% 8.9% -▼ -7.1%

Q1FY13 vs Q1FY12

1



Overall strategies for trading and build up of portfolio remain positioned to capitalise on rates movements

Q1FY13 customers’ flows remain healthy although operating environment was challenging amidst global uncertainties and flat yield curve has limited fixed income trading opportunity

Continue to invest in infrastructure & capabilities (expand product range & customized solutions) for growth

Markets: Better FX and derivatives contributions, offset by lower market-related income



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


Fixed Income, 25%

Foreign exchange,

32%

Derivatives, 43%



Income 130.0 73.3 -▼ -43.6%

Expenses 17.9 21.8 ▲ +21.8%

PBP 112.1 51.5 -▼ -54.1%

Impairments (0.2) (0.6) -▼ ->100.0%

PBT 112.3 52.1 -▼ -53.6%

PAT 84.3 39.2 -▼ -53.5%

CTI 13.7% 29.7% ▲ +16.0%

PAT : Fx and Derivatives 17.6 32.0 ▲ +81.8%

Total Group:

Financial assets HFT 6,590.2 7,125.9 ▲ +8.1%

Financial investments

AFS 4,397.3 6,277.8 ▲ +42.8%

Financial investments

HTM 143.4 1,122.5 ▲ +>100.0%

Q1FY13 vs

Q1FY12



General Insurance: Performance within expectations

Stable income growth, focus on motor & niche non-motor segments

Enhanced claims management process and control (e.g. restructuring and centralisation of claims operations)

Capital adequacy ratio exceeds benchmark supervisory target

Composition to Group5.1% 4.6% 4.6%4.8%

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




Income 52.3 51.6 -▼ -1.3%

Expenses 23.1 22.5 -▼ -2.6%

PBP 29.2 29.1 -▼ -0.3%

Impairments 0.5 0.5 = +0.0%

PBT 28.7 28.6 -▼ -0.3%

PAT 22.4 21.4 -▼ -4.6%

CTI 44.2% 43.6% -▼ -0.6%

General Insurance fund

assets1,177.0 1,278.2 ▲ +8.6%

Claim ratio 63.6% 65.1% ▲ +1.5%

Management expense

/ earned premium 16.3% 16.0% -▼ -0.3%

Q1FY13 vs

Q1FY12

GGGGGGG

GGG

GGG



Income 2.8 3.9 ▲ +39.0%

PAT 2.3 3.0 ▲ +27.0%

Life Assurance

fund assets 2,731.6 2,785.6 ▲ +2.0%

CAR ratio 214.7% 200.3% -▼ -14.4%

Gross written premium 112.7 116.0 ▲ +2.9%

Q1FY13 vs

Q1FY12

Income PAT

Life Assurance: Increasing support to Bancassurance and distribution channels

New CEO appointed in June 2012

Transfer from life business impacted by the revisions in BNM Guidelines on Financial Reporting for Insurers, from change in classification of Non-Par fund and reserves from liability to equity

Composition to Group0.6%0.4%Trusted by our stakeholders


* Restated with retrospective application of MFRS, where applicable** Life assurance shareholders’ fund accounts


Higher income from focused effort in working with Relationship Managers to offer customer specific customized solutions

Core business competencies of full suite Cash Management and Trade Finance yielding impressive growth in CASA

Higher expenses reflecting investment in new capabilities – implemented Foreign Currency capability on e-AmBiz (CIB portal) and rollout new Internet Trade transaction portal, AmTrade


Expenses

PBP

PAT

Composition to Group 6.2% 2.3% 8.9% 10.0%


Transaction Banking^: PAT up from improved revenues and higher volumes

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


Trade Services,

48%Cash Mgmt,

52%

^ Performances reflected within divisional outcomes* Restated with retrospective application of MFRS, where applicable

Q1FY13 vs

RM'mil Q1FY12* Q1FY13 Q1FY12

Income 61.3 65.9 ▲ +7.5%

Expenses 7.6 10.1 ▲ +32.9%

PBP 53.7 55.8 ▲ +3.9%

Impairments (5.0) (6.0) -▼ -20.0%

PBT 58.6 61.7 ▲ +5.3%

PAT 44.0 46.3 ▲ +5.2%


Trade Finance 4,168.2 4,850.1 ▲ +16.4%

Cash Management 15,075.7 17,957.4 ▲ +19.1%

CASA Deposits 3,067.6 5,517.2 ▲ +79.9%

ROA 4.27% 3.92% -▼ -0.4%

CTI 12.4% 15.3% ▲ +2.9%


PATIncome Expenses PBP

Group Operating Segments: Benefitted from higher recoveries

Higher income due to higher gain from securities redemption and forex gain

Higher expenses include recently set-up AmFamily Takaful business & core banking platform replacement

Composition to GroupComposition to Group 20.6% 2.7% 8.3%10.0%

Enablement functions governing and supporting delivery of improving divisional performances





Islamic Banking^: Higher income and lower provisions

Composition to Group

Higher income on the back on of strong asset growth and higher fee income

Strong deposits & CASA growth

19.3% 20.4% 15.5%20.0%

^ Performances reflected within divisional outcomes.

To be the Islamic Bank of choice




Income 190.0 212.6 ▲ +11.9%

Expenses 71.7 84.5 ▲ +17.7%

PBP 118.2 128.1 ▲ +8.4%

Impairments 39.1 31.2 -▼ -20.1%

PBT 79.1 96.9 ▲ +22.4%

PAT 58.1 71.5 ▲ +23.1%

Gross Financing 18,968.2 20,257.0 ▲ +6.8%

Gross Impaired Financing 1.28% 289.4 258.5 -▼ -10.7%


CASA Deposits 2,802.7 4,874.0 ▲ +73.9%

ROA 1.18% 1.21% ▲ +0.02%

CTI 37.8% 39.7% ▲ +2.0%

Allowance Coverage 176.1% 186.4% ▲ +10.3%

Q1FY13 vs Q1FY12




3. Outlook






o Others



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

12 & 24 months

FY 2008 and FY2009

36 months

FY 2010

48 months

FY 2011

60 & 72 months

FY 2012 and FY2013


High Priority Growth Initiatives: Implemented To-Date

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

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

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

• Inked business principle agreements with ANZ to leverage international connectivity• Commenced a new family Takaful business with Friends Life• Commenced Priority Banking expansion initiatives• Complete Kurnia acquisition and commence integration • Commenced MBF cards acquisition• Secured approval as Private Retirement Scheme (PRS) provider• Established partnership with Travelex for money changing services

Strategic Business

Transformation

High Priority Growth

Initiatives

Governance &

Enablement

Functions

12 & 24 months

36 months

FY 2010

48 months

FY 2011

60 & 72 months

FY 2012 and FY2013

FY 2008 and FY2009


Governance and Enablement Functions Streamlined:Supports Better Decision Making

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

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

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

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

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

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

Strategic Business

Transformation

High Priority

Growth Initiatives

Governance and

Enablement Functions

12 & 24 months

36 months

FY 2010

48 months

FY 2011

60 & 72 months

FY 2012 and FY2013

FY 2008 and FY2009


Funding strategy, improving diversity

RM10 bil senior notes programme

1st senior notes issuance by a financial institution in Malaysia

AmBank issued RM2.92bil senior notes (RM7bil over 30 year programme)

AmIslamic issued RM550m senior sukuk (RM3bil musyarakahprogramme)

Both rated AA3 (RAM)

Subordinated Sukuk

RM2bil subordinated sukuk musyarakah programme (issued RM600mil in Sep’11 and RM200mil in Jan’12)

Medium Term Notes

RM2bil medium term note (issued RM1.6bil Mar’08)

RM2bil medium term note (issued RM1.0bil Aug’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 88.8%

CASA: RM14.3bil (growth = 33.9%), FD: ~RM66.0bil (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)


109.6 197.4

307.0

530.2

837.2

121.8

216.7

338.5

584.2

922.7

Savings Current Account CASA Fixed Deposits Core Deposits

June'11 June'12

11.2% 9.8% 10.3% 10.2% 10.2%

4.4 6.3 10.7

65.6 76.3

5.0 9.3

14.3


Jun'11 Jun'12

13.2% 48.3% 33.9% 0.6% 5.2%

66.0

80.3



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

6.2%

11.6%

82.2%

AmBank Group Deposits Composition

SavingsCurrent AccountFixed Deposits

13.2%

23.5%63.3%

Industry Deposits Composition

SavingsCurrent AccountFixed Deposits


26.9 13.0 1.6 2.1

6.8 2.3 1.2 0.002 2.0 18.9

5.2

43.7 36.6

80.2

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

Jun-12

5.8% 4.8% 3.3% 13.5% 35.7% 9.3% 8.1% 25.1% 3.5% 9.7% 8.9%

4.0% 9.5%

6.4%

148.0 286.1

32.2 52.4 122.1 50.5 8.2 0.1 27.3 267.4 73.1

518.7 548.6

1,067.3

Purchase ofTransportVehicles

Purchase ofRes Properties

Credit Cards Personal Use Purchase ofNon-Res

Properties

Purchase ofSecurities

Fixed Assets ConsumerDurables

Construction Working Capital Other purpose Retail Loans Business &Corporate

Loans

Total Loans

Jun-12

11.0% 14.2%

12.6%

6.9% 13.6% 4.6% 13.4% 22.6% 16.9% 8.9% 18.6% 16.1% 8.9% 22.6%

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

composition : 33.6% 16.2% 2.0% 2.6% 8.5% 2.9% 1.5% 0.0% 2.5% 23.6% 6.6% 54.4% 45.6%

RM’bil

Source : BNM, internal reports

RM’bil

AmBank Group Loans Growth (including Islamic financing sold to Cagamas) by Economic Purpose*

Industry Loans Growth by Economic Purpose

composition : 13.9% 26.8% 3.0% 4.9% 11.4% 4.7% 0.8% 0.0% 2.6% 25.1% 6.8% 48.6% 51.4%

* Based on BNM classification


111.5

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

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

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

-10

0

10

20

30

40

50

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

2008 2009 2010 2011 2012

Trade Balance FDI

RM' bil

7.1%

16.1%

-15%

-10%

-5%

0%

5%

10%

15%

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

2008 2009 2010 2011 2012

GDP Consumption Investment

Moderating growth CPI & unemployment rates remain low

Trade balance stable, FDIs remain robust

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

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

-10

0

10

20

30

40

50

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

2008 2009 2010 2011

Trade Balance FDI

RM' bil

Sources : Bloomberg & BNM

GDP4.7%

Domestic consumption and investment continues to drive Malaysian economy

Private sector remains positive on economic prospects

Business Conditions Index

*

* May 2012 position


11.0%

14.2%

12.6%

5%

10%

15%


2008 2009 2010 2011 2012

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

12.13%

5.08% 5.02% 5.06% 4.85%

8.46%

2.12% 2.45%2.88%

3.00%

11.63%

5.62%6.02% 6.45% 6.53%

0%

5%

10%

15%

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 June 12

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

1.1%

10.5%

-40%

-20%

0%

20%

40%

60%


2008 2009 2010 2011 2012

Loans application growth YoY Loans approved growth YoY

184.5 213.8 257.7 307.6 342.1

273.0 260.9 263.7 333.7

400.1

37.5% 37.0%30.9% 32.9% 33.1%

65.9% 62.7%

75.1% 75.8% 76.6%

-100

100

300

500

700

900

1,100

1,300

1,500

2007 2008 2009 2010 2011

Retail loans application Non-retail loans application

Gross national savings Household debt/GDP


98.9%

2.2%

-2.0%

2.0%

6.0%

10.0%

14.0%

18.0%

0%

20%

40%

60%

80%

100%

120%


2008 2009 2010 2011 2012

Loan Loss Coverage Gross Impaired Loans

Source: BNM

Strong fundamentals in the banking sector

RM’bil

Capital activities supported by debt issuance Sustained deposits growth provides liquidityRM’mil

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

Loan loss coverage Gross impaired loans

Improving gross impaired loans

78.5%

0

200

400

600

800

1,000

1,200

1,400

1,600


2008 2009 2010 2011 2012

Total Deposits LD Ratio

0

10

20

30

40

50


2008 2009 2010 2011 2012

New issues of equity New issues of debt

14.7%

12.9%

0%

5%

10%

15%

20%


2008 2009 2010 2011 2012

RWCA CORE CAPITAL


ETP: Propelling Malaysia towards becoming a high-income, developed nation by 2020RM199.7 bil worth of initiatives unveiled since Oct 2010ETP overview

ETP execution gaining momentum

• RM 48k GNI per capita• RM 1.7 trillion GNI• 6% annual GDP growth

GROSS NATIONAL INCOME

JOBS

• 31.6m population• 3.3m additional jobs

TRANSFORMATIONAL ACTIONS

INVESTMENT

• 12 NKEAs, 131 EPPs• 60 BOs• Transformational approach• Private-sector led

• RM 1.4 trillion investment• 92% private investment• 8% public investment• 73% DDI, 27% FDI

ECONOMIC TRANSFORMATION

PROGRAMME

National Key Economic Area(RM bil)

To-dateTarget(2020)

% of Target

1. Wholesale and retail 255 10 3.9%

2.Communications content and infrastructure

51 1.5 2.9%

3. Greater Kuala Lumpur / Klang Valley 172 53.2 30.9%

4. Education 20 4.3 21.4%

5. Business services 41 3.6 8.9%

6. Oil, gas and energy 218 90.8 41.6%

7. Agriculture 22 1.2 5.3%

8. Tourism 204 15.5 7.6%

9. Electrical and electronics 78 9.1 11.6%

10. Palm oil and rubber 124 1.9 1.6%

11. Healthcare 23 3.0 13.0%

12. Financial services 211 - -

Overall composite scoring 1419* 199.7 14.1%

2020

*ETP discrepancies with sums of NKEAs due to rounding errors ETP : Economic Transformation Programme Source: Pemandu

Initiatives

Investment (RM’bil)

GNI Impact (RM’bil)

Job creation

Round 125 Oct 2010

Round 230 Nov 2010

Round 311 Jan 2011

Round 48 Mar 2011

Round 519 Apr 2011

Round 613 Jun 2011

Round 78 Sep 2011

Round 810 Nov 2011

Round 928 May 2012

To-date Target(2020)

% of Target

9 9 19 23 12 15 10 13 21 131 - -

5.3 8.3 67.0 14.8 11.2 63.4 1.4 5.85 20.5 199.7 1, 400 14.3

0.1 84.5 32.5 20.1 16.6 66.3 8.4 6.7 4.6 239.8 1,700 14.1

13,100 70,500 52,400 88,354 74,457 63,531 9,965 16,902 39,918 0.427 mil 3.3 mil 11.8


Malaysia provides attractive investment opportunities in ASEAN region

National Savings Rate(% of GDP)

Inflation (%)

GDP per capita (USD)

Malaysia Thailand Singapore Indonesia Philippines Vietnam

Source: Bloomberg, IMF, internal research house and various central banks data

2011 2012f 2011f 2012f 2010e 2012f 2011f 2012f 2011f 2012f 2011f 2012f

5.1 4.5 0.1 4.8 4.9 4.3 6.5 6.3 3.7 4.9 5.8 6.3

7,792 8,053 5,281 5,865 50,714 53,072 3,469 3,848 2,255 2,376 1,362 1,521

3.1 3.0 1.2 1.2 2.3 2.3 6.8 6.6 7.2 7.2 5.0 5.0

33.1 32.6 30.4 28.7 45.8 46.0 33.1 34.1 22.3 22.0 30.7 30.9

3.2 2.0-2.5 3.8 4.1 5.2 2.9 5.4 6.5 4.4 4.1 18.8 12.1

11.4 10.5 3.4 2.5 19.8 18.5 0.3 -0.4 3.1 1.3 -4.7 -3.8

-5.0 -4.7 -2.6 -2.9 +3.2 +3.6 -1.8 -1.3 -2.9 -2.5 N/A N/A

28.7 29.2 64.3 64.6 5.3 5.3 240.5 243.4 95.8 97.7 89.3 90.4

Unemployment (%)

Real GDP Growth, % YoY

ASEAN growth to moderate but remain robust

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)

Fiscal deficit (% of GDP)

Population (mil)


Strategic partnership provides mutual value add to ANZ and AmBank Group

ANZ expanding footprint in Asia Pacific

Greater Mekong

(31)

Greater China

(33)

Pacific (60)Singapore (6)

Indonesia (28)

Malaysia

India (1)

Aus/NZ-

E&A

Trade:

US$101b

Intra-

Asia

Trade:

US$1.6trn

Asia-

Europe

Trade:

US$1.0trn

Aus/NZ-

Asia

Trade:

US$235b

America (1)

Europe

(2)

Asia-US

Trade:

US$0.8trn

( ) - Number of branches and representative offices in each country

Franchise

Network

Entry

• Korea

• Japan

• Philippines

Franchise Markets

Institutional Network Markets

• Australia

• New Zealand

• Greater China

• Greater Mekong1

• India

• Indonesia

• Malaysia

• Singapore

• Pacific

• UAE

• Europe

• America

Network Entry Markets

• Thailand • Myanmar

1. Focus on VietnamSource: WTO

Relationship with AmBank Group ANZ’s representation on Board and within management

• Alexander Thursby – Director• Mark Whelan – Director• To be determinedB

OA

RD

MA

NA

GEM

ENT

Senior Management• Mandy Simpson – Chief Financial Officer • Andrew Kerr – Chief Risk Officer• Ross Foden – Chief Operations Officer

Management• Head, Market Risk• Head, Governance & Provisioning• Senior GM, Transaction Banking

Leadership & management

Customer referrals

Joint account planning

Assistance with products development

Provision of technical expertise

Access to regional network & connectivity


Good progress in international connectivity initiatives

• Set up AMMB-ANZ Joint International Connectivity Steering Committee – quarterly progressmeetings

• Launched AmBank – ANZ Get Set solutions, first of its kind in Malaysia pre-opening account servicesfor ANZ bank accounts at any AmBank branches

• Soft launched AmSignature Priority Banking in April 2012, part of an extensive network of ANZSignature Priority Banking centres across Asia Pacific, including Singapore, Hong Kong, Indonesia,Taiwan and China

• Signed Business Principles Agreement with ANZ, access to resources and opportunities with ANZ invarious areas of businesses across 27 countries

• Renewed Technical Services Agreement in relation to provision of technical services by ANZ in retail,business and other banking and financial services consisting primarily of project based services,provision of staff (other than senior management), as well as training and knowledge transfer services

• Enhance foreign currency account facilities – initially implemented in 30 branches now available in109 branches in 10 major foreign currencies!

• Partnership with International Money Transfer operator, Western Union – available at 185 branches!

• Partnership with foreign currency exchange specialist, Travelex which operates in 25 countries –available in 42 currencies

• Set up international connectivity initiatives through Transaction and Correspondent Banking

• And many more initiatives being planned


AmG Insurance – a high performing business

• Justin Breheny (IAG Asia CEO) - Director

• Duncan Brain (AmG CEO) - Director

SENIOR MANAGEMENT

• Duncan Brain - CEO

• Stephen Beatty - General Manager, Claims

OPERATIONAL & PROJECT SUPPORT / CONSULTANTS

• Around 7 operational and project support/consultants

Bo

ard

Man

age

me

nt

Leveraging strategic partnerships with global Insurance partners

Involved in the management of AmG, 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 INSURANCEV

alu

e P

rop

osi

tio

n

Annual GWP of RM650m, predominantly motor (80% GWP)

Strong double digit insurance margin and ROE

Industry-leading expense management ratio

Around 1 million policy holders and a diversified distribution base – 3,000 agents, AmBank bancassurance channel

Kurnia Insurans (Malaysia) Berhad (“Kurnia”) transaction will deliver market leading positions

• Kurnia shareholders met on 11 July 2012 and approved AmG’s acquisition of Kurnia and sale completion is expected in the second half of calendar 2012. The enlarged business will have around 4 million customers and be the leading motor insurer

• Beyond 2013 – Kurnia integration synergies delivered, maintain #1 position in motor


Capability & Talent Transfer

• John Van Der Wielen – Director

Bo

ard

Man

age

me

nt

Leveraging strategic partnerships with global Insurance partners

Strategy & Management Development

Technical expertise & risk management

Distribution & product development

LIFE ASSURANCEV

alu

e P

rop

osi

tio

n

New CEO appointed since June 2012

Key strategic initiatives for FY2013 include:

• New product launches for agency and bancassurance distribution channels to increase market penetration.

• Rationalising and re-focusing on product portfolio to ensure marketing-led sales propositions

CONSULTANTS

• Evelyn Gutteridge - Strategic Development Manager, International, Friends Life

• John O’Rorke - Independent Consultant, Distribution Expert


Strategy & Management Development

Technical Expertise & Risk Management

Distribution & Product Development

AmTakaful commenced business operations on 9 January 2012 via the bancatakaful channel and thereafter via the agency channel on 1 June 2012

Key strategic initiatives for FY2013 are as follows:

• To offer new and unique family takaful solutions through multi-distribution channels in order to achieve critical mass in its first year of operations

• To focus on developing quality distribution channels with emphasis on productivity

• To bring about operational improvements by building IT capabilities and strengthening technical operations

Bo

ard

Man

age

me

nt

Val

ue

Pro

po

siti

on

Leveraging strategic partnerships with global partners

FAMILY TAKAFUL

Capability & Talent Transfer

• John Van Der Wielen – Director

MANAGEMENT / CONSULTANTS

• Evelyn Gutteridge, Strategic Development Manager, International, Friends Life

• John O’Rorke, Independent Consultant, Distribution Expert


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

Multiple distribution channels aligned to demographics

Kuala LumpurBranches 28ATMs 153

TerengganuBranches 5ATMs 20

JohorBranches 23ATMs 95

MelakaBranches 5ATMs 35

Negeri SembilanBranches 8ATMs 38

PahangBranches 9ATMs 35 Sarawak

Branches 17ATMs 44

SabahBranches 11ATMs 36

Pulau PinangBranches 16ATMs 50

PerlisBranches 2ATMs 4

KelantanBranches 2ATMs 22

PerakBranches 19ATMs 45

KedahBranches 5ATMs 27

PutrajayaBranches 1ATMs 4

SelangorBranches 38ATMs 247

LabuanBranches 1ATMs 1

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 190 branches nationwide

- #51 in no. of branches

- 3 AmIslamic branches

o 856 ATMs- 403 ATMs (#1 provider of ATMs) at 7-Eleven

o 151 Electronic Banking Centreso 42 assurance/insurance offices2 (as at Mar 2012)o 14 AmInvestment officeso 4 Regional Business Centres (Penang, Johor,

Kuching, Kota Kinabalu)


Banking sector share price movement / target price and recommendations

Banking Sector Share Price Movement

80.0%

60.7%

56.8%

45.1%

31.7%

-3.1%

17.9%

-10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%

HLFG

AMMB

RHB Cap

PBB

CIMB

MBB

KLCI

-3.1%

(Note: 18 May 2007 vs. 30 June 2012)Ratings FY2007 Q1FY2013

Am

Ban

k (M

)

RAM A2/P1/Stable AA3/P1/Stable

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

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

Moody’s Baa2/P-3/Stable/D- Baa2/P-3/Positive(BFSR)1/D

Capital Intelligence BBB-/A3/Stable BBB/A3/Stable

Am

Inve

stm

en

t RAM AA3/P1/Stable AA3/P1/Stable

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

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

MARC AA-/MARC-1/Stable AA-/MARC-1/Positive1

Am

Isla

mic

RAM A2/P1/Stable AA3/P1/Stable

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 – Jun 12 P/BV : BV as at 30 June 12Source : Bloomberg as at 30 June 2012

1 BFSR - Banking Financial Strength Rating

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

P/EPS : 10.50 Market Price: 6.29 Average TP : RM 6.61 ▲ 0.01% P/BV : 1.65 Daily Beta: Buy : 10 (38%)

Hold : 11 (42%)Sell : 5 (19%)Ave. TP/Ave. CP : 1.05x -▼ 0.24%

AMMB HOLDINGS BERHAD0.75

RM

8.007.70 7.50 7.40 7.15 7.07 7.00 7.00 6.98 6.77 6.77 6.70 6.62 6.60 6.50 6.50 6.30 6.30 6.21 6.18 6.11 5.88 5.80 5.70 5.70

5.30

17

Ma

y 1

2

17

Ma

y 1

2

30

Ma

y 1

2

18

Ma

y 1

2

18

Ma

y 1

2

18

Ma

y 1

2

18

Ma

y 1

2

17

Ma

y 1

2

29

Ju

n 1

2

17

Ma

y 1

2

17

Ma

y 1

2

18

Ma

y 1

2

18

Ma

y 1

2

8 J

un

12

18

Ma

y 1

2

17

Ma

y 1

2

18

Ma

y 1

2

14

Fe

b 1

2

18

Ma

y 1

2

18

Ma

y 1

2

21

Ju

n 1

1

17

Ma

y 1

2

18

Ma

y 1

2

18

Ma

y 1

2

18

Ma

y 1

2

18

Ma

y 1

2


Solid shareholding structure & franchise value

AMAB Holdings Sdn Bhd

AmG Insurance Berhad

AmLife Insurance Berhad

AmFamily Takaful Berhad

100% 100%100% 100% 100%

100%

70%3

51%2

70%3

1. ANZ Funds Pty Ltd : a wholly owned subsidiary of Australia and New Zealand Banking Group Limited 2. Insurance Australia Group Ltd – 49% 3. Friends Life Limited – 30%

As at 30 June 2012

AmInvestmentGroup Berhad

AmInvestmentBank Berhad

Foreign shareholding excluding ANZ

FY2010 FY2011 FY2012 Q1 FY2013

27.1% 27.1% 26.2% 26.2%

Banking Capital Markets Insurance

Amcorp Group Berhad(16.8%)

ANZ Funds Pty Ltd1

(23.8%)Employees Provident Fund Board

(12.6%)Other Shareholders

(46.8%)

Asset Management

AmIslamic Bank Berhad


AmBank (M) Berhad

AMFB Holdings Berhad


19,263 24,357

32,370 30,191

12% 13%18% 18%

Asset Under Management Market Share

1,019

1,175 1,269 1,278

624 652 638

154

General Fund Assets Gross Premium

2,388

2,634 2,762 2,786

678 673

431

116

Life Fund Assets Gross Premium

General Insurance

RM’mil

Life Assurance

Institutional & Unit Trust AUM Brokerage

Unit trust : Institutional funds at ratio 59% : 41%

RM’mil

Highlights in key investment banking and insurance portfolios

CY09 CY10 CY11 H1CY12

FY10 FY11 FY12 Q1FY13 FY10 FY11 FY12 Q1FY13

6.7%

0.7%

Rank # 8

Rank # 2

Rank # 5

^ Ranking for General & Life are based on March 2012 position

Rank # 10

0.9%

FY10 FY11 FY12 Q1FY13

46,596 60,497 53,879

26,472

8% 8%

6% 6%

Trading Value Market Share


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

+6012 2974799 [email protected] or

[email protected]

http://www.ambankgroup.com/

mailto:[email protected]






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