AMMB Holdings Berhad AmBank Group Results · •Summary •Retail Banking •Business Banking...

AMMB Holdings Berhad

AmBank Group Results Investors Presentation

FY2010 Results

14 May 2010

Cheah Tek KuangGroup Managing Director

AMBANK GROUP – INVESTOR RELATIONS – PRESENTATION FY2010 1

Contents

• Key Messages• Financial Fundamentals• What is Ahead• Summary

• Retail Banking• Business Banking• Investment Banking • Corporate & Institutional Banking• Life Assurance• General Insurance• Operating Segments• Islamic Banking

• Economic Outlook• Competitive Positioning• BASEL III Discussions

1. Executive Summary

2. Financials Update

3. Business Strategy

4. Business Segment Performance

5. Competitive Positioning

• FY2010 Group Performance


AmBank Group snapshotAmBank Group snapshot

AmBank Group, PATMI : RM’mil

• Proud banking heritage & franchise spanning over 30+ years

• A top 20 listed company on the Bursa SahamMalaysia & rank globally 183 (by market cap amongst banks1), with diversified business fundamentals

• Record performance for three consecutive years; upgraded credit ratings2

• Well capitalized with Tier 1 CAR of 10.3% and total RWCA of 15.8%

• ANZ, our strategic partner in banking (one of the few AA rated banks in the world)

• Assurance business partners :

Insurance Australia Group (IAG) – general

Friends Provident (FP) – life

AMMB, Malaysia…

215 202 400 -282 669 861 1,009

2004 2005 2006 2007 2008 2009 2010

CAGR 29.4%

Source :1 Bloomberg (Global 1,000 banks by Market Capitalization as at 5 May 2010)2 Ratings upgraded in the last 12 months by Fitch Ratings Ltd, Standard & Poor’s Ratings Services, Rating Agency Malaysia Berhad and Moody’s Investors Services


Record FY2010 profits (3 consecutive annual record results)

Record FY2010 performance Higher revenues underpinned by growing non-interest incomes Better-than-expected loans and CASA growth Improved asset quality : higher LLC and record low NPL’s PATMI performance exceeded consensus

Key focus : Medium Term Aspirations (MTA)

Sound Retail, Business & Corporate & Institutional Banking profits Stronger Investment Banking performance, leveraged by capital market

recovery Diversified portfolios yielding higher profits in Life and General assurance

Improved capital & funding profiles, better positioned for rising interest rate environment

Proactive risk management Implementing FTP, ALM disciplines, Basel II and FRS Prepared for Basel III implications

FY2011 :• Sustain profitable growth, diversify & rebalance• Deliver faster non-interest income growth and CASA

Medium Term Aspirations : Malaysia’s Top 4 Banking Group as measured by:• Customer satisfaction• Sound financial performances• Well diversified and sustainable growth


Strong FY2010 results, sets good foundations for 2011P

erf

orm

ance

Profit after Tax & MI

ROE

Ris

k, C

ap

ital

&

Fun

din

g P

rofi

le

RWCA

Tier 1

Net NPL / NPF Ratio

Gro

wth

Net Lending / Financing

AdjustedCustomer Deposits 1

CASA

LD Ratio 1

EPS(basic)

88.8%

9.7%

15.2%

2.6%

6,755 mil

64,132 mil

56,948 mil

31.6 sen

11.7%

860.8 mil

FY09

91.7%

10.3%

15.8%

1.5%

8,372 mil

70,294 mil

64,426 mil

34.7 sen

11.5%

1,008.6 mil

FY10

+2.9%

0.6%

0.6%

-1.1%

23.9%

9.6%

13.1%

9.8%

0.2%

17.2%

Change Q4FY09 Q4FY10

179.8 mil 241.7 mil

9.6% 10.3%

26.8 sen 32.6 sen

Underlying PATMI growth : 20.1%

ROA 1.04% 1.13% 0.09% 0.86% 1.06%

Note :1 Includes Senior Notes of RM1.42 bil issued todate

Current ACE : 8.2%If ACE maintained at 7.3% - 7.7%, ROE range : 11.8% - 12.0%


FY2010 : Actual vs Consensus

Note :Consensus as at 1 April 2009 (source : Bloomberg)Revenue is taken from consensus “Sales” estimate, PATMI taken from consensus “Net Income GAAP” estimate, EPS taken from consensus “EPS GAAP” estimate

1.13%

11.5%

3,577 mil

1,009 mil

34.7

+ 0.32%

+ 2.4%

+ 5.9%

+ 32.1%

+ 28.5%

Performance Indicator / Market Ratio

0.81%

9.1%

3,379 mil

764 mil

27.0

Exceeded market consensus

+ 0.08%

+ 0.1%

+ 1.2%

+ 2.3%

+ 3.0%

1.05%

11.4%

3,619 mil

986 mil

33.7

Actual

FY2010

Consensus

(as at April 2009)

Actual vs Consensus (April 2009)

FY2010

Consensus

(as at March 2010)

Actual vs Consensus (March 2010)

FY2010


`

What is ahead …

Higher lending & RWA growth Competition : strong but some irrational pricing Upside : Stronger regional recoveries and NEM impact Expecting Basel III pronouncements

Industry :What is Ahead

Malaysia : Increasing optimism

Increasing global optimism but potential for continuing volatility

Acceleration in Malaysian economic recovery GDP 2010 : +5.0 to 6.0% (projection 1)

⁺ NEM (New Economic Model)⁺ Monetary policies, better-than-expected exports

OPR increase of 25 bps in March 2010; further 50 to 75 bps progressive interest hike expected in next 12 months

AMMB : Leverage tailwinds

Strategic themes to support accelerated profit growth Better positioned for rising interest rates Leverage economic upturn in 2010 Enhanced risk, governance and systems Leverage regional ANZ connectivity for new businesses Basel III could slow down achievement of ROE targets

Note :1 external reports (as at 12 May 2010)


Summary

1. Top 5 Banking Group (conventional + Islamic) inMalaysia with diversified business fundamentals,expanding franchise, and well supported by ANZ, ourstrategic partner.

2. Delivered 3 consecutive years of record profitperformances, exceeding market consensus.

3. Improved funding and capital profiles, and expectingopportunities to optimize capital even under Basel III.

4. Continue to maintain high vigilance on asset quality,risk disciplines, & cost management.

5. Stay focused on delivering greater value toshareholders via profitable growth, dynamicallyrebalancing portfolios, continue investing forsustainable returns, and accelerate regional ANZcollaboration (Medium Term Aspirations – MTA).



AmBank Group Results

Investors Presentation

FY2010 Results

14 May 2010

Ashok RamamurthyDeputy Group Managing Director &

Group Chief Financial Officer


Contents











Fee, 58%

Trading,28%

Insurance12%

Others,2%

Non-Interest Income composition

Sound profit growth, with conservative provisioning

REPORTEDBusiness Performance

FY09 results

Favourable growth in FY10

Unfavourable growth in FY10

Income :

All Divisions recorded good growth in incomes

Leveraging the recovery in capital and equity markets resulted in higher investment and trading incomes

Non interest income composition

Expenses:

Reflects salary and staffing increases, additional bonus, CPI and ongoing medium term investments, but within CTI targets

Provisions :

Higher GP – stronger loans growth

Pro-active provisioning to account for potential lag effects of recent economic downturn

Provisions include PER, impairment losses and provisions for commitments & contingencies

Note :1 FY2009 underlying is reinstated for one-offs as at 31 March 2010

UNDERLYING 1

RM'mil FY09 FY10

Net int income 2,289.2 2,518.5 +10.0%

Fee and comm 511.2 618.2 +20.9%

Inv and trading 6.6 298.5 +>100%

Ins business 121.3 123.7 +2.0%

Others (0.9) 18.2 +>100%

Total Income 2,927.4 3,577.0 +22.2%

Expenses 1,268.8 1,501.4 +18.3%

PBP 1,658.6 2,075.7 +25.1%

Provisions 441.0 699.0 +58.5%

PBT 1,217.6 1,376.7 +13.1%

PAT 878.3 1,042.6 +18.7%

PATMI 860.8 1,008.6 +17.2%

PATMI 840.8 1,009.4 +20.1%

FY10 vs FY09

GG

G

GG

G

GG

G

G

G

G

G


Retail, 67%

Business,12%

Investment,10%

CIB, 10%

Life, 3%

General, 5%

Ops,-8%

PATMI contribution

Strong contributions from all Divisions

Business Performance

FY09 results



Income and profit growth in Retail Banking delivered via focus on viable segments

Well-balanced Business Banking profits with both income growth and lower provisions

Better investment banking performance from leveraging improving capital and equity market conditions

CIB recorded higher interest and fee incomes from lending, asset-based and international businesses

Life Assurance and General Insurance recorded higher incomes from larger fund base and better efficiencies

Note :1 Net Assets : net lending & net financing (net of IIS, SP and GP)2 Life Assurance surplus is transferred into life policy shareholders’ fund in overall Group accounts

PATMI : Growth contributed by all business divisions

Net Assets 1 : Growth contributed by CIB and Business Banking

Retail lending focus on preferred / viable segments in a highly competitive environment

Business and SME growth focusing on stable growth sectors

CIB’s growth focusing on project financing with government support, GLC’s & large MNC’s

RM'mil FY09 FY10

Retail Banking Division 628.4 679.0 +8.1%

Business Banking Division 111.9 124.0 +10.8%

Investment Banking Division 41.6 100.8 +142.3%

Corporate & Institutional

Banking (CIB) 85.4 104.1 +21.9%

Assurance 45.1 80.8 +79.2%

Life Assurance 7.1 32.1 +352.1%

General Insurance 38.0 48.6 +27.9%

Operating Segments :

Reported PATMI (51.6) (80.0) -55.0%

Retail Banking Division 41,626.3 42,991.8 +3.3%

Business Banking Division 9,773.4 11,634.6 +19.0%

Corporate & Institutional Banking 4,957.3 8,971.5 +81.0%

FY10 vs FY09

GG

G

GGGGGGG

G

G


Lower NIM but improving non-interest income and cost-to-income


FY09 results



NIM impacted by :

Reduced interest recoveries

Change in asset mix towards lower

margin but stable corporate loans

Costs incurred to reposition balance

sheet mismatches

9MFY10 NIM = 2.92%

Lower cost to income ratio mainly due to

higher income

Higher other operating income

composition due to recovery in trading

incomes

Note :1 Net Interest Margin includes Net Financing Income from Islamic Banking business, as follows :

Reported and Underlying : FY09 – 0.68% FY10 – 0.82%2 CTI and CTA excluding insurance3 Other operating income includes net income from insurance business

FY09 FY10

Net Interest Margin

(NIM & NFR composite) 3.04% 2.98% -0.06%

Cost-Income

(CTI) 43.34% 41.97% -1.37%

Cost-Asset

(CTA) 1.50% 1.62% +0.12%

Non Interest Income

/ Total Income 21.8% 29.6% 7.8%

FY10 vs

FY09

GG

G

GGGGGGGGG


Faster than system loans and CASA growth


FY09 results



Better than anticipated

loans growth, targeting

viable segments

Strong CASA growth,

improving funding profiles

Note :1 Adjusted Customer Deposits : includes RM1.42 bil Senior Notes2 CASA : current accounts & savings accounts3 CASA proportion : as composition of Deposits from Customers4 LD : net loans (net IIS, SP, GP) / adjusted customer deposits

RM'mil FY09 FY10

Balance Sheet - Lending / Financing

Gross Loans / Financing 59,674.8 66,628.9 +11.7%

Net Loans / Financing 56,947.8 64,425.9 +13.1%

Balance Sheet - Deposits

Adjusted Customer Deposits 64,131.5 70,294.1 +9.6%

CASA Deposits 6,755.1 8,371.9 +23.9%

CASA Proportion 10.5% 12.2% +1.7%

LD Ratio 88.8% 91.7% +2.9%

FY10 vs

FY09

GG

G

GGGGGGGG

G

1

2

3

4


Retail, 69%

Biz,26%

CIB,4%

Best in class collections systems

Superior credit / risk tools yielding better results

Led by experienced team

Composition of NPL by segment :

10.9%

13.8%

9.6%

6.2%

3.7%

2.6%1.5%

14.8%

17.4%

12.4%

10.4%

6.3%

4.1%

2.8%2.24% 1.92% 1.73%3.19%

0.97% 0.60% 0.88%0%

5%

10%

15%

20%

4.3 5.8

4.6 3.2

2.0 1.5 1.0

39.3%32.2% 36.7%

56.6%67.3%

75.1%

99.5%

-60%

-20%

20%

60%

100%

-

5

10

15

RM'bil Gross NPL Net NPL Loan Loss Coverage

Asset quality now superior to industry average

Asset Quality Indicators

FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY2010

6.06

7.60

6.145.53

3.60

2.431.87

FY10 / FY09 change :Gross NPL / NPF ratio i1.3%Net NPL / NPF ratio i1.1%Net Provisions charge h0.28%

Gross NPL ratio

Net NPL ratio

Net provisions charge


0.00%

0.50%

1.00%

1.50%

2.00%

Q1 Q2 Q3 Q4

% Write-Offs to Avg Gross Loans / Financing

0.00%

0.40%

0.80%

1.20%

Q1 Q2 Q3 Q4

% Gross NPL / NPF Conversion to Gross Loans / Financing

0.00%

0.60%

1.20%

1.80%

Q1 Q2 Q3 Q4

% New Gross NPL / NPF to Gross Loans / Financing

Lower new gross NPL / NPF formation, recoveries, write-offs and conversions

Note :

1 FY2004 and FY2005 financials based on gross before IIS

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

FY2004 -FY2007 FY2008 FY2009 FY2010

0.00%

0.20%

0.40%

0.60%

Q1 Q2 Q3 Q4

% Recoveries to Avg Gross Loans / Financing


23.3

12.4

2.2 0.9 1.0 2.1

24.2

13.2

2.5

0.9

Auto Financing Mortgage Asset Financing Credit Cards Line of Credit Co-Op

RM'bil Mar '10 Mar '09

6.6%

11.6%3.9%

7.5%

12.4%

4.2%

10.0

4.9

1.3

11.9

8.8

1.1

Business Banking (ex GLR)


Banking

Loan Rehabilitation

79.2%

13.6%

18.7%

0.91.9

10.0

4.9

1.3

11.9

8.8

1.1

Business Banking (ex GLR)


Banking

Loan Rehabilitation

79.2%

13.6%

18.7%

Biz 26.5%

SME10.9%

Individual

61.0%

Others1.7%

Retail : targeting profitable segments

Business & Corporate : harness synergies via deepening customer relationships

Portfolio rebalancing : Focus on viable segments and diversification

Gross Loan / Financing movement (before netting Islamic financing sold to Cagamas)

by Interest Rate Typeby Customer Type

Loan Composition %36.6% 19.9% 3.7% 1.4% 2.9%1.3% 17.9% 13.3% 1.7%

Retail Business / Corporate Loans composition trend

RM'bil Mar-08 Mar-09 Mar-10Fixed rate :

Conventional 46.5% 42.9% 39.3%Islamic 15.1% 16.9% 17.8%

Variable rate :Conventional 38.3% 40.0% 42.6%Islamic 0.1% 0.3% 0.3%

66.6%

33.4%

FY10

Retail Biz / Corp

72.4%

27.6%

FY09

73.7%

26.3%

FY08


6,925.9 10,218.9

14,458.2 18,291.3

15,952.1 19,272.6

12.0%13.8%

16.6% 15.5%14.1%

12.8%^

-10.0%

0.0%

10.0%

20.0%

-

10,000

20,000

30,000

Market ShareAUM

Asset Under Management Market Share

19,923.4

39,940.8

92,845.4

50,044.2 46,490.8

5.0%

7.2%8.0% 8.0%

7.7%

-5.0%

0.0%

5.0%

10.0%

-

40,000

80,000

120,000

Market ShareTrading Value

Trading Value Market Share

539.9 601.8 696.3

811.3 901.8 1,018.6

390.4 438.2 476.3 545.6 585.8 624.4

-1000

-500

0

500

1000

-

500

1,000

1,500

Gross PremiumFund Assets

General Fund Assets* Gross Premium

Good growth in Assurance and key Investment Banking portfolios

FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010

General Insurance

* Prior to December 2008, based on general funds per BNM DGI returnsDecember 2008 & post December 2008 based on BNM DGI returns with total asset (general funds + shareholders’ funds)

^ Based on Dec 09 data

p 13.0%

RM’mil

Institutional funds : Unit trust funds ratio at 42 : 58

941.4 1,164.8 1,430.1

1,700.9 2,034.8

2,379.9

312.1 340.9 382.6 352.2 449.0

577.0

-800

0

800

-

1,000

2,000

3,000

4,000

Gross PremiumFund Assets

Life Fund Assets Gross Premium

Life Assurance

p 17.0%

2005 2006 2007 2008 2009

Institutional & Unit Trust Funds

p 20.8%

Stock Broking

q 7.1%


37.1

49.5

57.461.9

5.3

6.3

6.8

8.4

Mar 07 Mar 08 Mar 09 Mar 10RM'bil

CASA All Other Deposits 1

Accelerating growth in non-interest income and CASA

Non Interest / Financing Income Composition %

CASA grew by 23.9% in FY2010

Adjusted Customer Deposits by Type

CASA

FD + NID + Senior Notes + Treasury Deposits

12.6% 11.2% 10.5%

Total 42.4b 55.8b 64.1b

CASAcomposition

70.3b

12.2%

CASA CAGR15.7%

Note :1 “Others” by type comprises short-term treasury deposits, cash management system (CMS) placements and structured deposits2 CASA composition : as composition of Deposits from Customers

21.8%

29.6%

17.5% 17.3%

0.2%

8.3%4.1%

3.5%

0%

10%

20%

30%

FY09 FY10

Non-Interest Inc Fee Inc

Trading & Investment Inc Insurance Business


51.9%60.9% 62.6% 65.1%

26.9%

27.8% 27.8% 20.9%

9.2%

6.0% 4.5% 7.5%

0.1%11.0%

1.0% 5.2%5.1% 6.5%


Non-interest sensitive Islamic > 5 years 1-5 yrs 3-12 mths 0-3 mths

23.0 23.6 25.5 26.8

4.99.0

10.9 11.212.5

20.2

26.329.6

1.9

3.0

1.4

2.6


Others + Senior Notes Biz enterprises Government Individuals

4.8 2.1 1.60.4

0.51.4

0.70.5

1.3

1.4 0.90.9

10.9

2.12.9

2.5


Other FI's BNM Merchant banks Banks

Funding profile reflecting current interest regime

Individual and government funds grew 4.5% in FY2010

Diversified funding profiles

Reduce dependency on inter-banking funding

Note :1 “Others” by source comprises pension and retirement funds, non-profit organisations and similar

Includes Senior Notes RM1.42 bil

Adjusted Customer Deposits by Sources

Deposits of Banks & Other Financial Institutions

Adjusted Customer Deposits : Interest / Profit Rate Pricing Profile

Individuals

Government

Biz enterprises

Others 1

+ Senior Notes

0 – 3 months

3 – 12 months

1 – 5 years

Non - sensitive

> 5 yearsIslamic

BanksMerchant

BNMOther FI’s

17.4b 7.1b 6.1b 4.3b

Centralised Capital & Balance Sheet Management

Manage regulatory capital, economic capital, liquidity funding, FTP and balance sheet risks to optimise long term economic value

Formulate capital management frameworks, including dividend policy

Formulate capital management plan aligned to strategic plans, and stress tests

Manage efficient internal capital allocation

Execute capital and funding transactions in order to deliver a competitive advantage

Q4FY10 : issued RM1.42 bilSenior Notes under a RM7 bilterm funding program

Total


10.1 9.5 8.5

-8.5 -8.4 -10.5

-7.3 -7.9-9.8

-0.4 -0.6

-0.4

Interest / Profit Rate Risk : Non -Interest Sensitive

21.5 25.3 23.6

-3.4 -3.5 -2.5

0.8 0.80.1

Interest / Profit Rate Risk : > 5 years

10.0 10.8 13.4

-4.9 -5.1 -7.4

-4.0 -2.9

-9.3

Interest / Profit Rate Risk : 1 - 5 years

34.9 42.9 49.2

-58.8 -64.3 -65.8

3.2 2.29.3

Interest / Profit Rate Risk : 0 - 12 months

Balance sheet repositioned for rising interest rates

Note : Net mismatch comprises on-balance sheet and off-balance sheet interest rate gap sensitivity

Assets Liabilities Equity Off balance sheet gap / derivatives

FY2008 FY2009 FY2010 FY2008 FY2009 FY2010

RM’bil

Net mismatch -20.6 -19.2 -7.3

Net mismatch 18.9 22.5 21.2 Net mismatch -6.1 -7.4 -12.2

Net mismatch 1.1 2.9 -3.3Mismatch profileNet mismatch > 12 months

FY2008 13.9 bil

FY2009 18.0 bil

FY2010 5.7 bil


-0.17%

1.02% 1.04% 1.13%

ROA, %

-5.8%

11.5% 11.7% 11.5%

ROE, %

(13.3)

28.2 31.6 34.7

EPS, basicsen/share

Improved earnings, returns ratios and capital adequacy

Note :1 FY2007 capital adequacy ratios as per the published financial statements of AHB for FY2008

Innovative Tier 1 Capital Securities issued (AmBank (M) Berhad) :

Approved program = RM500 mil

Q1FY10 issuance = RM300 mil

Q2FY10 issuance = RM185 mil

Tier 2 :

Q3FY10 : issued 7th tranche of MTN RM98 mil, total todate RM1.56 bil

Capital management plan :

Optimise capital profile & buffer

Increase scenario modelling

Streamline corporate structures

Develop dynamic dividend policy

Proactive management of BIS / Basel III requirements

FY2007 FY2008 FY2009 FY2010

Core equity 5.8% 7.7% 7.8% 8.2%

Tier 1 6.8% 8.5% 9.7% 10.3%

RWCA 10.1% 14.1% 15.2% 15.8%

Capital adequacy : AMMB Holdings Berhad

Tier 1 RWCA

AmBank (M) Berhad 11.0% 15.3%

AmBank (M) Berhad, Group 9.9% 15.3%

AmInvestment Bank Berhad, Group 24.0% 29.4%

AmIslamic Bank Berhad 10.5% 15.3%

Capital adequacy : by legal entity, FY2010

FY07 FY08 FY09 FY10 FY07 FY08 FY09 FY10 FY07 FY08 FY09 FY10

FY10 / FY09 change i0.2%FY 09 / 08 change h0.2%

FY10 / FY09 change h0.09%FY 09 / 08 change h0.02%

FY10 / FY09 change h9.8%FY 09 / 08 change h12.1%

Maintaining profitability despite economic disruptions


Contents











Significant progress made in business transformation

12 months (FY 2008)

24 months (FY 2009)

36 months (FY 2010)

Strategic initiatives

Organisation & governance

Growth opportunities

Agree vision and aspirations

Set transformation strategy and agenda

Agree top down targets

Fix HP business strategy and action plans

Improve on asset quality

Realign growth towards profitable and viable segments only

Realign Markets Fixed Income business strategy and deliverables

Reset Mortgage business strategy and action plans

Leverage AmBank (M) entity for all Group balance sheet activities and vest AmInvestment Bank assets to AmBank (M)

Create deposits as a profit centre across all divisions and grow CASA

Realign customer ownerships and focus across all business divisions

Proactively strengthen capital and liquidity management to handle GFC issues

Repositioned balance sheet for rising interest rates

Buy out minority shareholders and privatiseAmInvestment Bank

Create specialist Finance and Risk management functions

Consolidate / simplify governance committee structures across entities

Deliver line of business budgets and performance reporting

Create a Group PMO to prioritise and manage key strategic initiatives and projects

Established Advance Risk Recognition Program (ARRP)

Strengthen risk disciplines via Group Risk Appetite Framework (e.g. tighter asset writing strategies and scorecard exceptions)

Set up a separate ALCO and capital and balance sheet management unit

Deliver Peer Bank comparisons and relative performance benchmarks

Implement short and long term incentives aligned to performance via MTA

Deliver 3rd generation retail scorecards and new market risk models

Commence PD, LGD & EAD for retail and non-retail, and security indicators for non-retail

Implement a new funds transfer pricing system aligned to balance sheet and non-traded risk strategy

Develop leadership bench-strength and succession planning

Implement new profit centre based retail branch distribution model

Create retail deposits as a separate line of business and grow CASA

Create a separate Corporate and Institutional Banking Division (CIB)

Develop a new FX business in collaboration with ANZ

Enhance cash management offering via Net Payroll system

Split insurance license to General and Life, and bring in a new life business partner, FriendsProvident Fund plc

Accelerate growth from GLC, GLIC and MNC via CIB Division

Acquire a general insurance business (MAA) and build scale

Develop a new Rates business in collaboration with ANZ

Set the agenda, and build consensus and teamwork

Build foundations and align structures to deliver on strategy

Deliver profitable and differentiated growth through GFC

AMBANK GROUP – INVESTOR RELATIONS – PRESENTATION FY2010

Malaysia’s Preferred Banking Group with International Connectivity

MTA: Strategic Themes

Aspirations:

MTA: Medium Term Aspirations

Customer focused

Product focused

Malaysia’s

Top 4 Banking Group

as measured by :

• Develop a liability-led business, complemented with asset growth in certain segments and products, and grow scale in wealth management in both Mass and Mass Affluent segments

• Develop a well diversified, profitable and sustainable client base and grow deposit and cash management, quality loans, international trade finance via leveraging ANZ connectivity, non-interest incomes and “Share of wallet”

• Provide innovative and quality solutions (including syndication and cross-selling) both domestic and cross border via ANZ, targeting high-impact and high-value clients, MNCs and GLCs

• Develop complete, end-to-end, comprehensive solutions and lead in capital markets, funds management, and stock broking underpinned by strong domestic and overseas distribution capability via ANZ

• Provide substantive, integrated and client-led business underpinned by a full suite of FX, Rates, Commodities and FI offerings, with ANZ collaborations

• Deliver premium product & customer propositions to target segments, streamline process to improve efficiencies and leverage Friends Provident

• Deliver competitive customer propositions via becoming a scale specialist in motor and niche specialist in commercial and non-motor personal lines, and leverage IAG

• Customer satisfaction

• Sound financial performances

• Well diversified and sustainable growth

24

Retail Banking(Conventional + Islamic)

Business Banking (Conventional + Islamic)

CIB(Conventional + Islamic)

Investment Banking(Conventional + Islamic)

Markets & Treasury(Conventional + Islamic)

Life Assurance

General Insurance


Increasing profit momentum forecast for FY 2011

Conventional + Islamic

Overall

Income growth from larger asset base and fees Increase focus on cross-selling and growing deposits Expect rising profit performance in FY 2011

Accelerate CASA & deposit growth, profitable asset growth and lower credit costs Continue to invest for medium term outcomes Expect stable profit for FY 2011

Leverage on upturn in capital markets Increase regional business through closer collaboration with ANZ Expect higher profits for FY 2011

Momentum from FX & Derivatives set to increase Expect higher profits in FY 2011

Maintain profitable growth & rebalancing focus via executing to our strategic agenda Income diversification, cost management, deposit growth & enhanced risk disciplines Position business for economic recovery domestically and regionally via leveraging ANZ Explore potential tactical in-fill acquisitions

Income growth arising from larger asset base and growth in non-interest incomes Proactively manage existing accounts for cross-sell and transactional deposits Expect better profit growth for FY 2011

Higher contribution from new products and increase in share of wallet from retail and business customers

Possible synergistic benefits from MAA acquisition Expect rising profits for FY 2011

Launch new products, improve new business IRR and leverage strategic partnership with Friends Provident

Expect growth in premium and profits for FY 2011

Retail Banking


Banking

Investment Banking

Life Assurance

General Insurance

Markets & Treasury

Business Banking


Specialisation

Effectiveness, efficiency, cost optimisation

Speed-to-market, fast turnaround

Customer and service excellence

Process improvements and reengineering

Better alignment to enable the key business /market strategies including revenue growth

Support enhanced risk management capabilities

Deliver infrastructure optimisation & rationalisation

Governance, enhance security and data integrity

Progressively building best in class “key enablers” in Malaysia

Best in class scorecards, risk and pricing models, and governance infrastructure

Asset writing business strategies, frameworks and policies

Effective identification, assessment / measurement, control / mitigation and monitoring / review of risks

Explicit risk-reward trade-offs

Results driven performance framework

Rewards & recognition

Talent management and succession planning

Performance improvement program

Best in class“key

enablers”

Customer

Lead in customer satisfaction

Expanded distribution footprints

Branding

Product & service differentiation

Customer proposition

Drive brand preference & affinity

Top of mind recall & brand power grid (brand value)

Customer centric & Branding


-RM282.5 mil RM668.5 mil RM860.8 mil RM1,008.6 mil 16 – 20%14 – 18%

CAGR ^

-5.8% 11.5% 11.7% 11.5% 12 - 13% *FY13 onwards :

15 – 18% *

37.1% 39.6% 43.3% 42.0% 42 - 43% 40 - 42%

6.2% 3.7% 2.6% 1.5% circa 1.5% 1 - 1.5%

5.0 sen / share

(loss year)

6.0 sen / share

18.3%

8.0 sen / share

19.0%

10.5 sen / share

28.1%

35 – 40%

payout

≥ 40%

payout

Improving outlook but expecting higher capital requirements

PATMI

ROE

CTI

Net NPL Ratio

Dividend

gross / payout

* *

* Adjusted for possible Basel III impacts on ACE^ Previously 12-15% sustainable profit growth

FY 07 FY 08 FY 09FY 10

ActualFY 2011

Medium Term Aspirations (MTA)


Regional connectivity via ANZ and access to world class “IP” and

skill resources :

AmBank Group well set to deliver on aspirations

Implement customer centric business

models :

Universal banking group :

1

2

3• ANZ, our strategic partner in Banking

• IAG in General Insurance • Friends Provident in Life Assurance

• Focus on customer segmentation and satisfaction measures

• Develop differentiated product and service propositions

• Well diversified and significant market positions in key business segments

• Wide distribution footprint and market reach

• Sound financial fundamentals

• Building “best in class” key enablers in Malaysia


Summary

1. Top 5 Banking Group (conventional + Islamic) inMalaysia with diversified business fundamentals,expanding franchise, and well supported by ANZ, ourstrategic partner.

2. Delivered 3 consecutive years of record profitperformances, exceeding market consensus.

3. Improved funding and capital profiles, and expectingopportunities to optimize capital even under Basel III.

4. Continue to maintain high vigilance on asset quality,risk disciplines, & cost management.

5. Stay focused on delivering greater value toshareholders via profitable growth, dynamicallyrebalancing portfolios, continue investing forsustainable returns, and accelerate regional ANZcollaboration (Medium Term Aspirations – MTA).


Contents











RM'mil FY09 FY10

Income 1,754.8 1,952.8 +11.3%

Expenses 654.7 739.9 +13.0%

PBP 1,100.1 1,212.9 +10.3%

Provisions 262.2 307.6 +17.3%

PBT 837.9 905.3 +8.0%

PAT 628.4 679.0 +8.1%



Gross NPL / NPF 1,683.7 1,289.2 -23.4%

Net NPL / NPF 1,289.3 974.7 -24.4%

Customer Deposits 37,543.4 38,204.5 +1.8%

Low Cost Deposits 5,861.7 6,880.6 +17.4%

ROA 1.53% 1.60% +0.07%

CTI 37.3% 37.9% +0.6%

Loan Loss Coverage 61.8% 76.2% +14.4%

FY10 vs FY09

G

Ratio : 0.65%

Ratio : 0.33%

Ratio : 2.93%

Ratio : 2.23%

Retail Banking Division

FY09 results



Income growth underpinned by focus on profitable segments and risk pricing

Expenses reflecting growing footprints and upgrade in risk tools, people cost and IT systems

Strong CASA growth

More vigilant measures to improve asset quality via enhancement to credit risk management, collections and recoveries management

Retail Banking’s Aspirations :

Develop a liability-led business, complemented with asset growth in certain segments and products, and grow scale in wealth management in both Mass and Mass Affluent segments

Strategic priorities :

Grow quality assets with better returns, post aligned segment (leverage lower funding cost, lower risk weightage and better risk) and profit modelling

Grow deposits, focusing on CASA

Diversify retail income via new line of business and widening of service offerings

Enhance customer value propositions via improved service level, differentiation (customer centricity and product innovation) and customer segmentation

Achieving profitable growth, balancing between margins and credit costs

PATExpensesIncome

Composition to Group 54.6% 49.3%

PBP

58.4% 65.1%


Business Banking Division

FY09 results



Income growth from lending to stable sectors, trade and transactional

Cost increase reflecting expansion in relationship team

More vigilant measures in asset quality via enhancement to credit risk management

Business Banking’s Aspirations :

Develop a well divesified, profitable and sustainable client base and grow deposit and cash management, quality loans, international trade finance via leveraging ANZ connectivity, non-interest incomes and “Share of wallet”


Overall 3C approach : Conserve, Control, Compete

Conserve – Deepen relationship with existing clients

Control – Monitor closely customers’ conduct of accounts and contain NPL’s through early warning detection and analytical tools

Compete – Target customers with good track record, feasible business plans and operating in chosen sectors, to grow Business’ asset base

Achieving profit growth post financial consolidation

PATPBPIncome Expenses

Composition to Group9.2% 5.9% 11.6% 11.9%

RM'mil FY09 FY10

Income 313.4 329.6 +5.2%

Expenses 85.7 88.2 +2.9%

PBP 227.7 241.3 +6.0%

Provisions 78.6 75.9 -3.4%

PBT 149.2 165.4 +10.9%

PAT 111.9 124.0 +10.8%



Gross NPL / NPF 106.9 77.6 -27.4%

Net NPL / NPF 49.0 38.9 -20.6%


Low Cost Deposits 896.7 1,479.8 +65.0%

ROA 1.25% 1.16% -0.09%

CTI 27.3% 26.8% -0.6%

Loan Loss Coverage 196.3% 283.0% +86.7%

FY10 vs FY09

Ratio : 0.65%

G

Ratio : 0.33%


Corporate & Institutional Banking Division

FY09 results



Diversified loans portfolio provided good support for income growth

Higher general provisions from larger loans base

Corporate & Institutional Banking’s Aspirations:

Provide innovative and quality solutions (including syndication and cross-selling) both domestic and cross-border via ANZ, targeting high-impact and high-value clients, MNCs and GLCs


Corporate & Institutional :

Top 3 comprehensive bank

Significant player in untapped financial institutions group sector in Malaysia

International : Top 7 broker for Singapore, top 10 broker for

Jakarta markets Top 5 bank in Labuan offshore market Leader in asset management in Brunei

Assets business : Top 3 private PE managers in Malaysia Top 2 / 3 position in REITs AUM ranking Top 4 trustee provider in Malaysia

Note : 1 Singapore Stock Exchange2 Jakarta Stock Exchange3 AmFraser International Pte Ltd4 PT AmCapital Indonesia

* Services include : large corporate lending, large corporate deposits, financial institution group, offshore banking, international business, private equity, REITs and loan syndication

Accelerate growth, underpinned by higher CASA, non-interest income and regional presence

PATPBPExpensesIncome


RM'mil FY09 FY10

Income 185.8 267.9 +44.2%

Expenses 76.6 87.8 +14.6%

PBP 109.2 180.1 +64.9%

Provisions 2.7 47.5 +>100%

PBT 106.4 132.6 +24.6%

PAT 85.4 104.1 +21.9%

CTI 41.2% 32.8% -8.5%


Assets Management 980.0 1,008.0 +2.9%

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

S'pore SE 130,973.3 159,633.5 +21.9%

Jakarta SE 49,428.7 63,235.2 +27.9%

AmFIPL 984.3 1,945.5 +97.7%

PTAMCI 463.6 542.5 +17.0%

Market Share as at:

AmFIPL 0.8% 1.2% +0.3%

PTAMCI 0.9% 0.9% +0.0%

FY10 vs

FY09

G

G

G

G

G

1

2

3

4


Investment Banking Division

FY09 results



Improvement in performance from pick-ups in capital market and stock market

Continue to strengthen business relationships and core expertise

Investment Banking’s Aspirations :

Develop complete, end-to-end, comprehensive solutions and lead in capital markets, funds management, and stock broking underpinned by strong domestic and overseas distribution capability via ANZ


Build sustainable income base with efficiency management

Maintain market leadership positioning: top 3 in chosen businesses

Develop new products and innovative solutions

Grow regional businesses and cross-border deals

Enhance infrastructure and systems, expand distribution channels, and improve operational efficiency (front to back-end)

Note :1 Including AmInvestment Management, AmInvestment Services, private banking & AmARA

Reposition as consistent top 3 player whilst delivering sustainable profit growth with lower volatility



RM'mil FY09 FY10

Income 201.2 306.4 +52.3%

Expenses 145.6 164.7 +13.1%

PBP 55.6 141.8 +155.0%

Provisions (0.4) 6.2 +>100%

PBT 56.0 135.5 +142.0%

PAT 41.6 100.8 +142.3%

CTI 72.4% 53.7% -18.7%

Assets Management 19,031.4 23,612.9 +24.1%

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

Bursa M'sia 41,368.7 56,657.4 +37.0%

Future KL index 441.7 324.7 -26.6%

IB Broking 3,356.2 4,313.2 +28.5%

AmFuture 75.0 63.1 -15.9%

Market Share as at:

IB Broking 8.1% 7.6% -0.5%

AmFuture 16.1% 19.7% +3.5%

FY10 vs FY09

G

G

G

G

1


Net Income PAT

Life Assurance

FY09 results



Higher income from larger fund assets, attributed to enhanced agency network and focus on product bundling and cross selling

Life Assurance’s Aspirations :

Deliver premium product & customer propositions to target segments, streamline process to improve efficiencies and leverage Friends Provident


Growth in top line and bottom line, driven by premium and revenue growth

Cost efficiency to ensure expenses grow at a rate less than premium growth

Increase product / service range offered, leveraging on Friends’ Provident’s expertise

Product re-pricing for compliance, competitiveness and profitability

Becoming a top 5 life assurance company

Composition to Group1.9% 3.1%

* Life assurance shareholder’s fund accounts

RM'mil FY09 FY10

Net Income 19.2 39.3 +>100.0%

PAT 7.1 32.1 +>100.0%

Life Assurance

fund assets 2,034.8 2,379.9 +17.0%

FY10 vs FY09

GG

G

G

G


General Insurance

FY09 results



Higher income from larger gross written premium, attributed to enhanced up- and cross-selling, and established distribution network

General Insurance’s Aspirations :

Deliver competitive customer propositions via becoming a scale specialist in motor and niche specialist in commercial and non-motor personal lines, and leverage IAG


Be a scale specialist in motor insurance through acquisition, improved penetration and renewal retention to take scale position

Deliver superior shareholder return

Lead in chosen niche commercial segments by targeting specific industries with specialist products and innovative distribution channels

Grow gross written premium and net profit after tax

Be a leader in non-motor personal lines by leveraging motor scale and customer base and optimising the AmBank Group network

Create stability, longevity and sustainability of performance, people and business systems

Becoming a well-diversified and profitable top 3 general insurance provider



RM'mil FY09 FY10

Income 125.2 136.7 +9.2%

Expenses 71.2 78.2 +9.8%

PBP 54.1 58.5 +8.1%

Provisions (0.4) 1.0 +>100%

PBT 54.4 57.4 +5.5%

PAT 38.0 48.6 +27.9%

CTI 56.9% 57.2% +0.3%

General Insurance

fund assets901.8 1,018.6 +13.0%

General business

claim69.6% 72.6% +3.0%

FY10 vs FY09

GG

G

G

G


Expenses

Group Operating Segments

FY09 results



Higher income from :

Markets and Treasury(improved trading conditions)

Loan Rehab units (recovery rate as scheduled)

Shareholders fund, Corporate & Shared Services (consolidation adjustments)

Markets and Treasury’s Aspirations :

Provide substantive, integrated and client-led business underpinned by a full suite of FX, Rates, Commodities and FI offerings, with ANZ collaborations


Strong top line and profit growth in FX, interest rate derivatives and commodities

Enhance market penetration via effective customer segmentation and leveraging on ANZ to enhance product offerings

Deliver more consistent profits in fixed income via hedging of sticky portfolio, size growth and quality enhancement of liquid AFS, and execution of IRS hedges

Enhance new products and business offerings including tailored business facility, enhanced selection of currency pairs and distributed FX platform

PATPBPIncome

Composition to Group15.2% 22.7% 9.7% -4.4%

Markets & Treasury : Achieving top 3 rank in customer penetration, sales and profitability by 2013, with lower volatility

RM'mil FY09 FY10

Income 327.9 542.5 +65.4%

Expenses 235.1 340.7 +44.9%

PBP 92.8 201.8 +117.5%

Provisions 98.3 260.7 +165.2%

PBT (5.5) (58.9) -970.9%

PAT (34.2) (46.0) -34.5%

PATMI (51.6) (80.0) -55.0%

Total Group:

Securities HFT 1,400.0 1,713.4 +22.4%

Securities AFS 6,626.1 9,093.9 +37.2%

Securities HTM 780.2 562.7 -27.9%

FY10 vs FY09

GG

G

G

G

G

G

GGG


RM'mil FY09 FY10

Income 562.2 685.0 +21.9%

Expenses 218.5 259.3 +18.6%

PBP 343.7 425.7 +23.9%

Allowances 130.3 69.2 -46.9%

PBT 213.3 356.6 +67.2%

PAT 156.7 261.3 +66.8%

Net Financing 9,810.5 11,758.7 +19.9%

Gross NPF 239.6 182.2 -24.0%

Net NPF 140.6 117.4 -16.5%


Low Cost Deposits 1,591.8 2,065.2 +29.7%

ROA 1.75% 2.42% +0.67%

CTI 38.9% 37.8% -1.0%

Financing Loss Coverage 110.8% 137.0% +26.1%

FY10 vs FY09

G

Islamic Banking

FY09 results



Results improvement attributed to business expansion in line with Islamic banking growth in Malaysia

Underlying branding position remains strong and expected to provide growth support

Islamic Banking’s Aspirations :

To become Islamic bank of choice and ensure high degree of value for customers, employees and stakeholders


Grow retail financing products via development of more program lending, globally accepted new products, variations to existing products to suit customers’ needs and equity based financing

Grow business banking and corporate & institutional banking products so as to increase the contribution of Islamic business to total merged bank

Strengthen Islamic’s treasury and international currency business

Develop Islamic fee-based products

* Results incorporated under respective business divisions

Increase contribution to overall merged bank portfolio



Ratio : 1.48%

Ratio : 0.96%


Contents











0.00

2.00

4.00

6.00

8.00

2008 2009 2010F 2011E 2012E

%

OPR, BLR OPR (%) BLR (%)

1.0

2.0

3.0

2008 2009 2010F 2011E 2012E

%

Deposit Rates Retail Deposit Rate (%)

Corporate Deposit Rate (%)

Faster than expected Malaysian economic recovery

• Business activities picking up indicated by IPI growth, driven by

manufacturing growth (6.8% yoy)

electricity growth (11.4% yoy)

• Unemployment rate decrease & government spending to moderate

• OPR rose by 25 bps in March 2010 and expected to further increase by 50 bps this year

Banking sector growth supported by strong capitalisation

• Loans expected to grow over 10% yoy

driven by consumer credit – HP & mortgage

commercial credit growth expected to improve

• Deposits grew 7.4% yoy in Feb 2010

• Strong RWCR & CCR, 15.1% & 13.5% (Feb 2010)

Key statistics 2009 2010

CPI (2005=100) 0.6% 2.0 – 2.5%

Unemployment

(% of labour force)3.7% 3.6 %

Fiscal deficit to GDP 7% 5.6%

Note :1 external reports (as at 12 May 2010)

Malaysia, a fast rebounding emerging economy with strong banking sector fundamentals

-3.0

0.0

3.0

6.0

9.0

12.0

2005 2006 2007 2008 2009 2010F 2011E 2012E

% YoY

Real GDP : ConsumptionPrivate Consumption (%YoY)

Government Consumption (%YoY)

Real GDP (% YoY)

1 2010 GDP : +5% to 6%


4.8%

1.8%

3.3%

1.8%

5.3%

1.4%

3.2%

2.2%

Thailand

Singapore

Indonesia

Malaysia

Non-Performing Loan Ratio

New Economic Model : 31 March 2010

High Income

Targets US$15,000 – 20,000 per capita by 2020

Enables all communities to fully benefit from the

wealth of the country

RakyatQuality of Life

New Economic Model : Goals Strategic Reform Initiatives (SRIs)

Meets present needs without compromising

future generations

Sustainability

Developing a quality workforce and reducing dependency on foreign labour

1

5

6

8

2

Inclusiveness

Creating a competitive domestic economy

Strengthening the public sector

Transparent and market-friendly affirmative action

Building the knowledge base and infrastructure

Enhancing the sources of growth

Ensuring sustainability of growth

Re-energising the private sector

3

4

7

86.6%

109.2%

25.8%

116.2%

83.6%

102.2%

26.5%

98.4%

Thailand

Singapore

Indonesia

Malaysia

Loans to GDP

-2.3%

-2.0%

4.6%

-1.7%

2.5%

1.3%

6.1%

4.6%

Thailand

Singapore

Indonesia

Malaysia

GDP Growth

2008 2009Note :1 sources – Bloomberg, respective central banks’ website, in-house research2 GDP based on 2000p except for Thailand based on 1988p


Strategic partnership with global partner, ANZ

Competitive positioning : continues to strengthen

Sound size and market position in key business

segments

1

2

3

4

5

6

Well diversified universal bank & # 4 largest banking group (market capitalization) # 4 in retail bank, # 5 in business and corporate & institutional banking lending Top 2 investment bank , #5 in Islamic banking, #6 in general, #7 in life assurance

Strong customer-focused financial institution, lead in customer satisfaction

Focus on Segmentation & positioning strategies and differentiating ourselves through product & service

Large retail and corporate client base provides high cross-selling potential

Award-winning products and services

Improving “Top of Mind” brand recall

Expanding distribution footprint (branch network – 189, #3 largest ATM network (736), 355 ATMs @ 7/11 and 134 EBC’s)

eChannels : internet banking, mobile banking and 24 hours call centre

Pioneer in weekend banking concept

~8,000 sales agents, direct sales teams, marketing & personal bankers, financial services and insurance agents

Strategic partnership with ANZ (since May 07), 1 of 11 AA rated global banks Leveraging ANZ : strengthen strategy formulation, financial management, risk management, distribution

channel management, deposits strategy and product development

Strong key shareholders with common aspirations

AIGB privatisation & internal business restructuring completed

Insurance business partnership (2009)

Improvement in stock valuation &upgrades in credit ratings

Experienced management team with key ANZ appointments

Industry experts with international and domestic best practices

Performance based culture for all levels

Strengtheningcompetitive positioning


Strategic focus : Maintain viable growth and rebalancing focus

De-riskD

iffe

ren

tiat

ed

Gro

wth

Low

Mo

der

ate

Hig

hDe-risk + DiversifyDiversify

Conventional + Islamic

1


Competitive positioning :Sound size and market position in key business segments

#2 auto financier : 20.5% market share; Best Auto Financier Award in 2007

# 6 (incl. foreign banks) in housing loans (5.5%)

# 7 (incl. foreign banks) in credit cards (6.5%)

# 3 in personal financing (5.4%)

>1.4 products per customer

# 5 in no. of branches &

# 3 in no. of ATM’s

Pioneer in weekend and extended banking hours

Leverage on nationwide network : 4 regional business centres & 12 commercial centres; and strong relationship managers force

Leader in cash management (full suite) and SME financing

Expanding trade and remittance leveraging on ANZ’s regional network

# 3 in motor insurance premiums (8.5%) and # 6 in general insurance premiums (5.2%)

# 7 in life assurance premiums (5.6%)

Leverage IAG’s market and operational leadership in general insurance

New strategic partner, Friends Provident, in life assurance

Investment Banking

Retail Banking Business Banking Assurance

► Awards : Best Bond, Best Bond Group, Best Portfolio Manager, Best Deal, Best League Manager

► Ranked Top 3 in : Malaysian Ringgit

Bond league Participating

organisations’ Bursa trading summary

Islamic Banking

Full range of banking products and services according to Syariah principles

Latest venture : set-up of Islamic funds management division

# 2 in Islamic credit cards

Diversify Islamic banking business in Brunei

Reposition as consistent top 3, premier

investment banking group

Profit growth post financial consolidation

Profitable growth, with top-class customer service

& innovative products

Becoming top 3 general insurer & top

5 life insurer

To become Islamic bank of choice

# 2# 4 # 5 # 6 # 7 # 5[General] [Life]


Banking

► Build niche in corporate lending, focusing on GLC’s and MNC’s

► Cross-sell commercial banking products

► International businesses : Singapore, Indonesia & Brunei

► Diversify businesses in REITs and private equity

Accelerate growth & innovation to deliver

value enhancing propositions

# 5

1

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Competitive positioning :Momentum in non interest income & low-cost deposits

Enlarge nationwide branch network

Larger ATM base

ATM placement at 7-Eleven

Build main-bank relationships

Anchor products :

Product bundling 3A approach : activation,

acquisition, anti-attrition

Deposits as “profit centre”

Higher KPI’s for Retail, Business, CIB & Islamic Banking

Customer segmentation

Performance-linked

Footprints expansion

Service & convenience proposition

Higher targets for branch teams Manage deposits as “profit”

product under new FTP mechanism

Increase cross-selling

Leverage trade programs, cash management & auto payroll

Family First : full suite financial planning

AmStarExtreme : competitive rates and fees, ease of transactions

Wealth management Islamic fee-based products Increase focus on banacassurance &

international trade Fx and derivatives : Expand offerings, new

solutions & extend distribution platform

New products / businesses :

Core recurring income base:

Investment Banking : End-to-end solutions, multi-asset class, front-to-back trading platform & baseline staple products

Markets : consistent fixed income profits, execute hedges, grow size for liquid, quality securities & reduce VaR

Regional business: Singapore & Jakarta broking business, Labuan offshore & Brunei asset management

Assurance : Higher gross written premiums, MAA acquisition synergies

Asset business

Contribution increase :

Increase customer penetration from current levels (high KPI focus)

Increase share of wallet (of customers), account planning approach

Increase utilisation of Group channels

Cross – selling :

Growing Non Interest Income CASA growth strategy

1


Peer group comparison 1

31.3

23.5

18.7 16.5

13.4 14.4

37.9

26.7 22.9 22.7

16.7 15.9

21.1% 13.6% 22.8% 38.2% 24.6% 10.4%

Maybank Islamic Berhad

Bank Islam Malaysia Bhd

CIMB Islamic Bank

Public Islamic Bank

AmIslamic Bank Berhad

Bank Muamalat

Dec08 Dec 09 Growth

69.8

48.5 50.2

39.8

25.7 23.4

79.2

58.654.7

41.6

28.624.1

13.5% 20.7% 8.9% 4.3% 11.1% 3.0%

PBB CIMB MBB AMMB RHBC HLFG

Dec 08 Dec 09 Growth

182.6

117.4 118.4

60.6 56.0

35.2

195.1

142.2 135.3

66.9 63.9

36.1

6.9% 21.2% 14.3% 10.4% 14.1% 2.7%

MBB CIMB PBB RHBC AMMB HLFG


301.7

206.7 196.2

104.5 86.5 85.6

330.8

240.4 217.1

115.0 94.9 88.1

9.7% 16.3% 10.7% 10.0% 9.7% 2.9%

MBB CIMB PBB RHBC AMMB HLFG


5th largest banking group in Malaysia by asset size

(RM'bil)Total Assets

5th largest by lending Growth comparable to system

(RM’bil)Loans & Advances

Retail Assets (RM'bil)

4th largest by retail assets

Islamic Banking Assets (RM'bil)

5th largest by Islamic banking assets

*

* Based on Sept 09


7th in life assurance

Peer group comparison 1

No.1 by transaction value Source :Lipper Hindsight, Malaysian Association of Asset Managers Bloomberg / Bursa Malaysia (transactions Jan – Mar 2010)

1,524

1,277

625 502

250

31.7% 26.6% 13.0% 10.4% 5.2%

AmInvestment Bank

CIMB Standard Chartered PLC

Maybank Investment Bank

HSBC

Malaysian Ringgit Bond League Amount Market ShareMalaysian Ringgit Bond (RM'mil)

23.3 22.0 20.9

16.3

6.5

35.6

22.421.9

19.8

6.4

52.6% 1.7% 5.1% 21.7%

Public Mutual Mayban / AMB CIMB-Principal AMMB AR JMF

Funds Under Management Dec 08 Dec 09

Growth

Funds under Management (RM‘bil)

-1.0%

4th largest FUM

17.2 15.7

13.5 12.1 11.9

9.5% 8.7% 7.5% 6.7% 6.6%

CIMB HwangDBS AmInvestment Bank

RHB Investment Bank

OSK Investment Bank

Trading Value Market ShareBrokerage Turnover (RM‘bil)

3rd by trading value

791

515

447 409

330

15.1% 9.8% 8.5% 7.8% 6.3%

Kurnia Allianz AmG Tokio Marine Pacific & Orient

Amount Market ShareMotor Insurance (RM’mil)

1,152

932

779 766 690

604

10.0% 8.1% 6.8% 6.6% 6.0% 5.2%

Allianz Kurnia MSIG Etiqa Tokio Marine

AmG

(RM'mil) Amount Market ShareGeneral Insurance

1,350

1,134

977

693

505 423

17.9% 15.1% 13.0% 9.2% 6.7% 5.6%

ING G E Life Prudential Mayban Life MAA AmLife

Amount Market Share

Life Assurance (RM'mil)

3rd in motor insurance 6th in general insuranceSource :

ISM Insurance Services Malaysia Bhd for Motor & General Insurance (Jan – Dec 2009 data)Life Insurance Association of Malaysia for Life Insurance (Jan – Dec 2009 data)


Competitive positioning :Recognised brand name / strong customer franchise

AmBank at top 4 TOM brand recall

Continuous improvement initiatives on brand awareness campaigns

Efforts will continue to strengthen brand positioning

Positively positioned against 2nd-tier competitors

Strengths : “extended banking hours”, “responsive”, “friendly bank”, “good quality products and services” & “value to long term relationship”

Ongoing efforts to improve performance matrixes

The AmBank Brand : Top-of-Mind Brand Awareness & Service Performance

2

Competitor ACompetitor B Competitor C

Bank A

(Bank A)

Bank B

(Bank B)

Bank C

(Bank C)

Bank D

(Bank D)

(Bank E)

Bank E


Reaping awards and accolades

10th CCAM Annual Contact Center Awards 2009 :

- Silver Award for Best Telemarketing Contact Center, Best Contact Center Manager, Best Contact Center Telemarketer, Best Contact Center Support Professional

- Bronze Award for Mystery shopper results

Association of Accredited Advertising Agents Malaysia (4As), The Edge Malaysia and Interbrand Awards 2009 :

- One of the Top 30 companies of “Malaysia’s most valuable brands” stature

Malaysian Takaful Association Awards 2009 :

- Best Bancatakaful Award

Top Corporate Performers Award 2009 held in conjunction with 4th edition Malaysian 1000 – Top Corporate Directory :

- Most prominent company award for effort in creating value for society and contribution to nation building

“Malaysian Independence Award 1957” in 2009 :

- Industry Excellence Awards (Financial Services Category)

Euromoney Private Banking Survey, 2010 : Best Local Private Bank in Malaysia

The Edge-Lipper Malaysia Fund Awards 2010 :

- Best Bond Group

- AmDynamic Bond (Best Bond MYR Fund – 3 years)

- AmDynamic Bond (Best Bond MYR Fund – 5 years)

Third Alpha South East Asia’s Annual deal and solution awards 2009 :⁻ Most Innovative Deal of the Year in South East Asia - 1Malaysia Development Berhad’s RM5.0bil Islamic MTN issue⁻ Best Islamic Financing deal for the Year in South East Asia – Penerbangan Malaysia Berhad’s RM2.2bil Islamic MTN issue

IFR Asia Awards 2009 :⁻ Malaysia Capital Markets Deal Award – Maxis Berhad RM11.2bil IPO

2009

Asset Triple A Awards 2009 :⁻ Best Domestic Bond House in Malaysia⁻ Best Deal in Malaysia – 1Malaysia Development Berhad RM5bil Islamic MTN programme

2


Major investment banking deals clinched 2

1Malaysia Development

Berhad

Islamic Medium Term Notes

Programme of up to RM5.0

Billion

May 2009

Principal Adviser, Lead Arranger

and Lead Manager

RM10.0 Billion Islamic Medium Term

Notes pursuant to a Ringgit

Issuance Programme and a Multi-

Currency Issuance Programme

April 2009

Joint Principal Adviser and

Joint Lead Arranger

Danga Capital Berhad

Cagamas MBS Berhad

Listing of RM4.0 Billion Sukuk

and RM6.0 Billion Conventional

Bonds on Bursa Malaysia on an

Exempt Regime basis

August 2009

Principal Adviser

Perbadanan Tabung Pendidikan

Tinggi Nasional

RM1,500 Million

Syndicated Term Loan under

the Islamic principle

November 2009

Mandated Lead Arranger

Cagamas Berhad

RM2,070.0 Million

Conventional and Islamic

Medium Term Notes Issuance

March 2009

Joint Lead Manager and

Joint Bookrunner

Mulpha SPV Limited

USD200 Million Medium Term

Note Programme

December 2009

Joint Lead Arranger

RM1,450.0 Million

Syndicated Term Loan

July 2009

Mandated Lead Arranger

Sarawak Energy Berhad

Putrajaya Holdings Sdn Bhd

Sukuk Musyarakah Medium Term

Notes Programme of up to

RM1,500.0 Million

April 2009

Joint Principal Adviser, Joint Lead

Arranger and Joint Lead Manager

PDS Deals

Loan Syndication Deals

IOI Corporation Berhad

Rights Issue RM1,220,166,471November 2009

Adviser

Dijaya Corporation Berhad

Rights Issue RM194,719,187November 2009

Adviser

KencanaPetroleum

Berhad

Rights Issue RM18,245,910January 2010

Adviser

HLG Capital Berhad

Rights IssueRM123,448,334September 2009

Adviser

Rights Issue

Multi Sports Holdings LtdMarket

Capitalisation:RM306,000,000

Adviser, Sole Underwriter and Sole

Placement Agent

XiDeLang Holdings Ltd

Market Capitalisation:

RM232,000,000Adviser, Co-Underwriter and Co-Placement Agent

Maxis Berhad


RM39,000,000,000Joint Managing

Underwriter

TA Global Holdings Ltd


RM2,407,681,816Adviser

IPO

IOI Corporation Berhad

RM534 million

Conditional Voluntary Take-Over Offer On IOI

Properties Berhad31 March 2009

Delegateam Sdn BhdRM1.65 billion

Voluntary Take-Over Offer on Sarawak Energy Berhad

November 2009

IJM Corporation Berhad

RM1.32 billionProposed Disposals,

Proposed Dividend In-Specie & Proposed Capital

RepaymentRM23.4 million

Proposed Offer To Eligible Employees

27 May 2009

Ranhill Berhad

Above RM1 billion

Proposed disposal of all its water assets and

corresponding liabilities1 September 2009

M & A


Competitive positioning :Wide market reach and multiple distribution channels

Branch Banking

E- Channels & Contact

Centre (incl. Internet &

Mobile Banking)

Wealth Mgmt

ASPIRATIONS Increased customer satisfaction via integrated & seamless channels model Expand branch network and SSM footprint Further build and improve sales & service capabilities

Business Units Key Strategic Initiatives

Deposit & Customer Solutions

Number of ATMs

2,8312,052

771 684 473 319 241 174 145

MaybankCIMB AmBank RHB PBB HLB EON Alliance Affin

Number of Branches

Source : Company websites of peer banks / MEPS informationNote : Peer groups as at 31 March 2010; AmBank as at latest practicable date

#5

#3

Total no

ATM’s at 7 Eleven 363

Electronic Banking Centers (EBC) 136

FUM no. of accounts 50 K

Assurance offices 74

AmInvestment offices 15

Life assurance policy holders ~402 K

General insurance policies in force ~1,196 K

3

364 323248 234 189 186 139 89 86

MaybankCIMB Public RHB AmBank HLB EON Alliance Affin Has 189 branches nationwide, pending 2 branches to be opened in UIA and Seri Hartamas

10 new branches to be opened (200+ by early 2011)

Reaching out to our customers by expanding our self service machine (SSM) network at branches, shopping centers and 7-Eleven stores

Drive profitability by expanding revenue streams through additional services like

Interbank Loan & Bill Payment and a full suite of Prepaid Top Up services

Maximizing our outbound sales productivity through our Award Winning Contact Centre

Enhance customer experience via innovative mobile and internet banking services

Increase deposits by being the main bank for our customers’ transactional and savings needs by; (1) increasing deposits promotions and branch marketing events and activities (2) focusing on payroll customers acquisition (3) excelling in

service delivery Enhancing the products suite and services to be

more convenient, simple and friendly to the customers

Establishing new line of business i.e. Priority Banking to cater to Affluent segment

Increase cross selling via AmUtopia system Multi campaign/product launches to cater to

different customer segment. WM system – endorsed by Board. Finalizing

contract with vendor. Group Wealth Steering Committee to be set-up.


Competitive positioning :Strategic partnership with global partner, ANZ

+ ANZ is the only

Australian bank to have been in the Asian region of over 40 years

Strategic banking partnerships and presence across 14 countries

In August 2009, ANZ acquired selected RBS businesses in Asia for US$550 million, thus reinforcing its strategic intent of a super regional objective

ANZ is committed to AmBank Group’s long-term success and aspirations

Malaysia

Director

Dr. Robert John EdgarBoard

Director

Alex Thursby

Senior

Management

Deputy Group MD & Group CFO

Ashok Ramamurthy

Chief Risk Officer

Andrew Kerr

Head of Retail Distrib & Deposits

Brad GravellManagement

Head of FX & Derivatives

Steve Kelly

Credit Risk / Portfolio Management

Glenn Saunders

Head of Market Risk

Jonathan Manifold

Head of Systems Accounting

Ignatius Lim

Chief Operating Officer

Ross Neil Foden

Director

Mark Whelan

Head of Sales, FX & Derivatives

Peter Trumper

ANZ has provided key resources and support

4


Leveraging on ANZ

Business growth

Risk / governance

Structural transformation

Improve mortgage and credit cards business models for receivables growth and operational enhancements

Progressively grow new business in FX, derivatives and commodities : Seconded ANZ staff and recruit new staff Complete end-to-end business platform & core integrated business streams Sales, trading, IT, risk, product development and process skills

Developing integrated wealth management business Leverage ANZ connectivity to : access migrant population business grow international trade financing & increase cross border deals / transactions develop regional structuring / advisory capabilities & expand offshore fund management / broking

services. Export niche AmBank products to ANZ’s regional offices

Reorganised finance structure focusing on specialisation and business partnering

Refined trading strategies by proactively trading and realigning VaR

Implemented second and third generation scorecards

Implementing new FTP mechanism wef 1 April 2010

Rolling out probability-of-default, loss-given-default, earnings-at-default models

Rolled out new branch distribution model based on profitability & new staff incentives

Deposits as distinct business segment

Strategic repositioning of auto financing for profitable growth via improvements to customer segmentation & pricing for risk

Restructured distribution function for greater fee income generating avenues, managed as profit centres


4


Competitive positioning :Experienced management team

• Majority of the senior management have more than 20 years of experience in the banking industry

• AmBank Group : ~10,000 employees

• Key emphasis on human resource and capital development recognisingstaff value towards growth targets

5

Name Designation Profile

Cheah Tek Kuang Group Managing DirectorJoined the Group in 1978 with over 30 years of experience and has held various senior positions in AmBank Group

Ashok RamamurthyDeputy Group Managing Director & Group Chief Financial Officer

Joined the Group in 2007 and has over 20 years of experience, most of which has been with ANZ across multiple geographies including Australia, New Zealand and India

Datuk Mohamed Azmi Mahmood

Managing Director, Retail BankingJoined the Group in 1981 and has almost 30 years of experience in the banking industry

Dato’ James Lim Cheng Poh

Managing Director, Business BankingJoined the Group in 2004 with almost 30 years of experience in the banking industry, most of which has been with Hong Leong Group

Kok Tuck Cheong Managing Director, Investment BankingJoined the Group in 1981 , with close to 30 years’ experience encompassing treasury, corporate finance, investment banking and funds management

Pushpa Rajadurai Managing Director, Corporate & Institutional Banking

Joined the Group in 1989 and has over 25 years of experience in the investment banking and financial consultancy field

Ng Lian Lu Chief Executive Officer, AmLife InsuranceAppointed as CEO of AmAssurance in 2002 (prior to the segregation into AmLife and AmG), with over 25 years experience in the insurance industry

Datuk Mahdi bin Morad Chief Executive Officer, AmIslamic BankJoined the Group in 1989 and was appointed CEO of AmIslamic in September 2009; prior experience in finance company and Malaysian conglomerate

Teng Chean Choy Managing Director, Treasury & MarketsJoined the Group in 1995; over 20 years experience in treasury, having held management positions in Malaysian financial institutions

Andrew Strain Kerr Chief Risk OfficerJoined the Group in 2007 and with almost 30 years of banking experience with major financial institutions which include Bank of America and ANZ

Ross Neil Foden Chief Operations OfficerJoined the Group in 2009 with over 30 years of experience in operations. Prior to that, he was the General Manager for Operations and Transformation for ANZ Asia Pacific

Duncan Victor Brain Chief Executive Officer, AmG InsuranceJoined the Group on 8 March 2010; over 20 years experience in general insurance across Asia, Australia and New Zealand. Previously Head of South East Asia for Insurance Australia Group


Shareholding structure

Ranked No. 18 (Malaysia – market capitalisation) & 183 (global – 1,000 banks by market capitalisation) :

with market capitalization of RM15.16 billion on Bursa SahamMalaysia (1)

and market capitalization of US$4.63 billion on Bloomberg (2)

AHB in progress of due diligence to acquire :

general insurance business of a local insurance company

As at 31 March 2010

Foreign shareholding excluding ANZ :

100% 70%*100%

100%

AmInvestmentGroup Berhad

16.7% 13.4% 46.1%

Employees Provident Fund Board

AMMB Holdings Bhd

Amcorp Group Bhd

Public

AmBank (M) Berhad

AmIslamicBank Bhd

^ Insurance Australia Group Ltd –49%

ANZ Funds Pty Ltd #

23.8%

Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10

36.95% 37.15% 34.39% 30.08% 28.38% 29.58% 28.53% 29.58% 27.06%

AMFB Holdings Bhd

100%

51%^

AMAB Holdings Sdn Bhd

100%

AmG Insurance Berhad

AmLife Insurance Berhad

* Friends Provident Fund PLC –30%

Source :1 StarBiz (Top 100 Companies by Market Capitalization as at 2 April 2010)2 Bloomberg (Global 1,000 banks by Market Capitalization as at 5 May 2010)

# ANZ Funds Pty Ltd : a wholly owned subsidiary of Australia and New Zealand Banking Group Limited (“ANZ”)

6


Stats

Median

Average

Range

6.15 6.15 6.13 6.10 6.10 6.10 6.00 6.00 5.90 5.80 5.70 5.70 5.60 5.55 5.50 5.40 5.35 5.26 5.25 5.24

5.10 4.90 4.80 4.78

4.20

AMMB HOLDINGS BERHAD Average TP : RM 5.55Buy : 22 (88%) Hold : 1 (4%) Sell : 2 (8%)

9Fe

b 10

1 M

ac10

1 A

pr 1

0

8 A

pr10

9Fe

b 1

0

9 Fe

b 1

0

4 M

ac 1

0

9 A

pr 1

0

9 Fe

b10

9Fe

b 10

6A

pr 1

0

4 M

ac 1

0

8 Fe

b 1

0

4 M

ac10

P/ EPS =13.93 P/BV = 1.57

8 Fe

b 10

16 M

ac 1

0

8 A

pr 1

0

8 Fe

b 10

17 M

ac 1

0

9Fe

b 10

5M

ac 1

0

9 Fe

b 10

5 M

ac 1

0

Market Price: RM 4.96 0.20%

2 A

pr 1

0

1 A

pr 1

0

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

140.0%

May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10

Date

MBB PBB CIMB RHBC AMMB HLFG KLCI Index

Banking sector share price movement /Target price and recommendations

Target Price and Recommendations

p/q index change at close of 31 Mar 10 vs 18 May 07

(strategic partnership with ANZ)

AMMB p + 27.7% (RM5.00)

HLFG p + 24.3% (RM8.45)

PBB p + 22.7% (RM11.64)

RHBC p + 19.5% (RM5.64)

CIMB p + 18.2% (RM14.06)

KLCI Index q – 2.7% (1,320.57)

MBB q – 16.8% (RM7.47)

RM’mil FY2010

Share Capital 3,014.2

Reserves 6,829.8

Shareholders’ Equity 9,844.0

Less: Intangible Assets (1,825.5)

NTA 8,018.5

NTA Per Ordinary Share (RM) 2.66

Net Asset Per Ordinary Share (RM)

3.27

Market Price (RM) 5.00

Price to Book [NTA / Net Asset]

1.88 / 1.53

EPS (sen) – basic, annualised 34.71

Dividend (gross sen / share) 10.5

31 March 1018 May 07

Source : Bloomberg

(strategic partnership with ANZ)

Banking Sector Share Price Movement

6

Index change market price close of 16 Apr 10 vs. 9 Apr 10 Buy/Outperform/Overweight/AddP/EPS : EPS annualized Apr-Dec 09 P/BV : BV as at 31 Dec 09

Sell/Underperform/Fully valued/Reduce/Underweight

Hold / NeutralAs at 16 April 2010

Index Movement

(May 07 = 100)


0

2

4

6

8

2007 2008 2009 2010

A1

AA3

AA2

A2

AA3/P1/Stable

AA3/P1/Stable

AA3/P1/Stable

AA3/P1/Stable

0

2

4

6

8

2007 2008 2009 2010

BBB-

BBB

BBB+

BB+

BB+/B/Stable

BBB-/F3/Stable

BBB/F3/Stable

BB+/B/Positive

0

2

4

6

8

2007 2008 2009 2010

BBB

BBB+

BB+

BBB-BB+/B/Stable

BBB-/A-3/Positive

BB+/B/Stable

BBB-/A-3/Positive

0

2

4

6

8

2007 2008 2009 2010

AA-

AA

AA+

A+

AA-/MARC-1/Stable

AA-/MARC-1/Stable

AA-/MARC-1/Stable

AA-/MARC-1/Positive

0

2

4

6

8

2007 2008 2009 2010

A1

AA3

AA2

A2

A2/P1/Stable

A1/P1/Stable

AA3/P1/Stable

0

2

4

6

8

2007 2008 2009 2010

BBB-

BBB

BBB+

BB+

BBB-/F3/Stable

BBB-/F3/Positive

BBB-/F3/Stable

BBB/F3/Stable

0

2

4

6

8

2007 2008 2009 2010

BBB-

BBB

BBB+

BB+

BBB-/A-3/Stable

BBB-/A-3/Stable

BBB-/A-3/Stable

BBB-/A-3/Positive

0

2

4

6

8

2007 2008 2009 2010

Baa2

Baa1

A3

Baa3

Baa2/P-3/D-Stable

Baa2/P-3/D-Stable

Baa2/P-3/D-Stable

Baa2/P-3/DStable

0

2

4

6

8

2007 2008 2009 2010

BBB-

BBB

BBB+

BB+

BBB-/A3/Stable

BBB-/A3/Stable

BBB-/A3/Positive

BBB-/A3/Positive

A1/P1/Stable

Ratings upgraded

AmBank (M) Berhad AmInvestment Bank Berhad

AmIslamic Bank Berhad

0

2

4

6

8

2007 2008 2009 2010

A1

AA3

AA2

A2

AA3/P1/Stable

AA3/P1/StableA1/P1/

StableA2/P1/Stable

RAM

Fitch

S&P

Moody’s

CapitalIntelligence

RAM

MARC

S&P

Fitch

RAM

#

# : Based on Dec 09

reflected system outlook

#

#

#

negative outlook issued in July 2009 but moved up to stable in December 2009


BIS / Basel III

Objectives of new BIS proposals

Key changes to definition of

capital

• Addressing failures that brought about the global financial crisis in 2007-2009

• Raising quality, consistency and transparency

• Strengthening risk coverage of capital framework

• Introduction of :

• leverage ratio as supplementary measure to Basel II

• measures to build up capital buffers in good times to cushion bad times

• global minimum liquidity standard for internationally active banks

• Improvement to quality and consistency of common equity element of tier 1

• Common equity to form greater proportion of tier 1

• Strengthen feature requirement for instruments in tier 1 outside common equity element

• One set of criteria for tier 2

• Tier 3 to be abolished

• Dividend restrictions where capital buffers are insufficient

• No major impact to AmInvestment Bank Berhad and AmIslamic Bank Berhad

• Assessment in progress to restructure AmBank (M) Berhad vis-à-vis the Group holding company

AmBank Group


Research Coverage

No Research House Analyst

1 Affin Investment Bank Tan Ei Leen

2 Alliance Research Sdn Bhd Soh Meng Hui

3 Bank of America – Merrill Lynch Research Kar Weng Loo / Melvyn Boey

4 BNP Paribas Securities (Singapore) Pte Ltd Ng Wee Siang

5 CIMB Investment Bank Berhad Winson Ng

6 Citi Investment Research Fiona Leong

7 CLSA Securities Malaysia Sdn Bhd Loong Chee Wei

8 Deutsche Bank Malaysia Andrew Hill

9 ECM Libra Investment Research Bernard Ching

10 HwangDBS Vickers Research Sdn Bhd Lim Sue Lin

11 Inter-Pacific Research Sdn Bhd Anthony Das

12 J.P. Morgan Chris Oh

13 KAF - Seagroatt & Campbell Securities Sdn Bhd Chehan Perera

14 Kenanga Investment Bank Berhad Chan Chee Kin

15 Kim Eng Research Sdn Bhd Yew Chee Yoon

16 Macquarie Capital Securities (Singapore) Pte Ltd Tay Chin Seng

17 Maybank Investment Bank Berhad Wong Chew Hann

18 MIDF Research Kelvin Ong

19 Nomura Malaysia Sdn Bhd Julian Chua

20 OSK Research Sdn Bhd Keith Wee

21 RHB Research Institute Sdn Bhd David Chong

22 Standard Chartered Bank Tan See Ping

23 TA Securities Holdings Berhad Wong Li Shia

24 UBS Securities Malaysia Sdn Bhd Khairul Rifaie

25 UOB Kay Hian Research Pte Ltd Vincent Khoo / Leow Huey Chuen


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 SegmentsBusiness segments

• 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 proprietary and treasury trading, shareholder funds, loan rehabilitation and legacy busin esses, 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 “AHB” 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 securities. Neither does this presentation purport to contain all the information that a prospective investor may require. Because it is not possible for AMMB Holdings or its affiliates to have 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

AMBANK GROUP – INVESTOR RELATIONS – PRESENTATION FY2010

The material in this presentation is general background information about AmBank Group’s activities current at the date of the presentation. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor.

These should be considered, with or without professional advice when deciding if an investment is appropriate.

For further information, visit :

www.ambankgroup.com

or contact

Ganesh Kumar Nadarajah

Head, Group Investor Relations

Tel : +603 2036 1435 Fax : +603 2031 7384 e-mail : [email protected] or+6019 2093955 [email protected]

Date post:	13-Jun-2020
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AMMB Holdings Berhad AmBank Group Results · •Summary •Retail Banking •Business Banking...

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