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AmBank Group

Investors Presentation

AMMB Holdings Berhad

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

Cheah Tek KuangCheah Tek Kuang

Group Managing DirectorGroup Managing Director


Q1 FY2012 Results

15 August 2011

Contents

1. Executive summary

2. Q1FY2012 Group Financial Performance

3. Strategy & Outlook



4. Divisional Performance

5. Supplementary Information

Pre ANZ Partnership Focus Scale & Presence

ANZ Partnership Focus (FY2008/2011)

Reposition & Build

FY2012 Focus Improving Returns

Q1FY2012

Continued growth momentum

PATMI up 20%, improving ROE�

Profit growth underpinned by higher non-interest income & lower

allowances �

Good start to FY2012


Q1FY2012

Highlights

Medium Term Aspiration (MTA):

FY2012 – FY2014

To Become Malaysia’s Preferred Banking Group with International Connectivity

measured by customer satisfaction, sound financial performances, well diversified & sustainable growth

Strong deposits and targeted loans growth, but higher than expected

NIM compression�

Capital levels positioned for Basel 3 and target payouts�

Execute to strategic themes (MTA), strengthen market positions &

leverage on ANZ’s international connectivity�

Good start to FY2012

Pe

rfo

rma

nce PATMI

EPS (basic)

ROA

ROE

Strong Q1FY2012 performance

� Higher income, reflecting strong performance for non-interest income��

Continued strong performance

YoY Change

PBP

Q1FY12 Q1FY11 ∆% Q4FY11 FY11CAGR

(FY07-11)

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

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

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

1.69% 1.58% 0.11% 1.26% 1.39% 0.4%

14.82 sen 12.22 sen 2.5 sen 10.52 sen 44.7 sen 14.4%1


Transaction* Islamic*

+45.7% -1.1%Q1FY12 vs Q1FY11 PATMI growth

� Higher income, reflecting strong performance for non-interest income

� Improvement in asset quality with lower charge offs/allowance

��

� Better asset quality underpinned Retail Banking’s profit growth

� Diversified portfolios yielding higher profits in Business Banking, Corporate & Institution Banking,

Investment Banking, Markets and General Insurance

� Life Assurance: increasing focus on Bancassurance and better performing agencies

Div

ers

ific

ati

on

��

Broad based earnings growth

* Performances integrated to divisional outcomes

1 CAGR computed based on FY2007 underlying profit of RM556.9 million.

2 Not annualised

Retail BusinessCorporate &

InstitutionalInvestment Markets Life General

+14.1% +47.5% +40.7% +68.1% +34.6% -29.5% +73.4%

Gro

wth

Gro

wth

Net Lending1

CASA

Adjusted Customer Deposits2

� Asset growth targeted at profitable and viable segments

� Strong deposit growth via expanded product and service offerings

� Implemented customer segmentation to enhance share of wallet

Sound loans and deposits growth

Improved risk &

��

Sound loans and deposits growth; improved risk & financial disciplines

YoY Change

YoY Change

To be updated

Q1FY12 Q1FY11 ∆% FY11CAGR

(FY07-11)

72.8 bil 66.2 bil 10.0% 71.1 bil 9.0%

83.6 bil 72.1 bil 16.0% 81.3 bil 15.4%

10.0 bil 8.4 bil 19.3% 9.9 bil 16.9%


Ris

k,

Ca

pit

al

&

Fu

nd

ing

Pro

file

Ris

k,

Ca

pit

al

&

Fu

nd

ing

Pro

file

Gross impaired loans

RWCAR

LD Ratio3

Tier 1 CAR

� Proactive risk management

� Implemented FRS disciplines under BNM transitional provisions and new FTP4

1 Includes Islamic loans sold with recourse

2 Adjusted customer deposits include term funding and loans sold with recourse

3 Based on net loans including loans sold with recourse over adjusted customer deposits

4 Funds transfer pricing

5 Estimated capital ratios include Q1FY12 unappropriated profits of AmBank (M) Bhd Group, AmIslamic

Bank & AmInvestment Bank Group

CTI

Improved risk & financial disciplines

��

YoY Change

CET-1

Q1FY12 Q1FY11 ∆% FY11

2.96% 3.60% 0.64% 3.33%

13.7% / 14.1%5 16.7% / 17.1%5 3.0% 14.4%

9.7% / 10.1% 5 10.0% / 10.5%5 0.3% 10.2%

7.6% / 8.0%5 7.8% / 8.4%5 0.2% 8.0%

87.1% 91.9% 4.8% 87.4%

38.5% 38.5% - 39.9%

Medium Term Aspiration: Strategic priorities & growth levers

To become Malaysia’s Preferred Banking Group with International Connectivity

To become Malaysia’s Preferred Banking Group with International Connectivity

Measured by:

• customer satisfaction

• sound financial performances

• well diversified and sustainable growth

Growth LeversStrategic Priorities


1. Leverage international connectivity

2. Invest to grow income

3. Enhance customer share of wallet

4. Capitalise on ETP

5. Upgrade capability and productivity

� Profitable growth and rebalancing

� Diversification and new business

development

� Non-interest income and deposit growth

� Customer centricity

AmBank Group





Q1 FY2012 Results

15 August 2011

Ashok RamamurthyAshok Ramamurthy

Deputy Group Managing Director &Deputy Group Managing Director &

Group Chief Financial OfficerGroup Chief Financial Officer




Contents





Strong profit underpinned by higher non-interest income & lower allowances

� 44.3% � 23.3%� 11.9%

� 8.2% 441.5 mil

� 19.9%� 14.6%� 11.9% � 11.9% � 18.2% � 19.5%

368.3 mil

Financial Performance

Income: up 11.9%

� Non interest income =

~40% of total income

Expenses: up 11.9%

� Salary & staffing

increases, ongoing

medium term

investments but

within CTI targets

Faster NIM compression

due to

� 2.5%


PATMI

Q1FY11

Net Interest

Income

Non-Interest

Income

Total

incomeExpenses PBP

Provisions/

AllowancesPBT Tax PAT MI

PATMI

Q1FY12

Q1FY12

(RM’mil)668.8 438.8 1,107.6 426.5 681.1 70.9 610.2 154.2 456.0 14.5

Q1FY11

(RM’mil)685.7 304.1 989.8 381.2 608.6 92.4 516.2 134.5 381.7 13.4

Variance -16.9 134.7 117.8 45.3 72.5 -21.5 94.0 19.7 74.3 1.1

due to

� Expected factors such

as term funding raised

in FY2011, competitive

pressures in retail and

mix effects of growing

non-retail

� Unexpected factors

such as rapid increase

in SRR, increase in

interbank placements

arising from a better

LDR, some retail asset

mix effects and falling

longer term yield

curves due to global

events Positive growth in Q1FY12PATMI Contraction in Q1FY12

Diversified divisional contributions

PATMI (by division)

� 14.1%

� 47.5%

�40.7%

� 34.6% � 73.4%

368.3 mil

441.5 mil�68.1%

� 19.9%PATMI contribution

� 29.5% �>100% �45.7%

87%

84%

13%

16%

Retail

34%

Operating, -7%Investment

CIB

16%

Business

19%


Retail

banking

Business

banking

Corporate &

Institutional

Investment

Banking

Markets Life

Assurance

General

Insurance

Operating

Segments

Transaction

Banking

Positive growth in Q1FY12

PATMI

Q1FY11Retail Business

Corporate &

InstitutionalInvestment Markets

Life

Assurance^

General

Insurance

Operating

SegmentsTransaction*

PATMI

Q1FY12

Q1FY12

(RM’mil)150.9 84.5 71.5 44.2 85.2 16.7 22.2 -33.7 42.1

Q1FY11

(RM’mil)132.2 57.3 50.8 26.3 63.3 23.7 12.8 1.9 28.9

Variance 18.7 27.2 20.7 17.9 21.9 -7.0 9.4 -35.6 13.2

Contraction in Q1FY12

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

84%

Conventional PATMI Islamic PATMI

� Life Assurance: lower profits transferred

in Q1FY2012 pending business model

refinements

� Operating segments impacted by higher

funding cost & prudent acceleration of

provisions on specific accounts

General

5%Life

4%

Markets

19%

Investment

10%

511.2 610.3 674.3

159.0 193.8

6.6

288.1 302.4

89.4

34.8

98.1 1.9

187.5

121.3

123.7

172.0

52.0

53.9

18.2

21.6

3.7

3.5

64.0

Growing non-interest income; faster than expected NIM compression

FY09 FY10 FY11 Q1FY11 Fee IncomeTrading & Insurance

Others Q1FY12

Non-interest income movement

As % of total income

22% 29% 30% 31% 40%

RM' Mil

44%

43%

1%

12%

� 44.3%

(0.9)

638.2

1,040.3

1,170.3

304.1

438.8�� 21.9% �� >100% �� 3.7% � 5.4%


3.44%

2.68%

2.92%

3.08%

2.86% 2.91% 2.90%

3.01% 3.08%

3.04%

2.98% 2.94%

2.65%

3.05% 2.95% 2.90%

2.85% 2.65%

Note :1 Net Interest Margin includes Net Financing Income from Islamic Banking business2 FY09-Q1FY12 based on internal data computation

FY09 FY10 FY11 Q1FY11 Fee IncomeTrading &

Investment

Insurance

BusinessOthers Q1FY12

Fee Income Trading & Investment Insurance Business Others

NIM and Cost of Funds

Cost of Fund NIM OPR SRR

FY09 FY10 FY11 Q1FY12 Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12

2.50%2.75% 2.75% 2.75%

3.00%

1.00% 1.00% 1.00% 1.00%

2.00%

3.00%2.00%

2.25%

2.75%3.00%

1.00% 1.00% 1.00%

3.00%

NIM /

COF

OPR /

SRR

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%

2.96%

0.67% 0.40%

Lower loan loss provisioning, in part from higher recoveries

Asset Quality Indicators

FR

S 1

39G

P3

�

85bps

27bps

�

Gross Impaired Loans

• Retail Bkg: 2.84%

• Business Bkg: 1.59%


Net NPL Gross NPL Gross Impaired Loans Loan Loss Coverage Allowance Coverage

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

3.182.02 1.50 1.01

5.53

3.602.43

1.87 2.54 2.45 2.23

56.6%

67.3%75.1%

99.5%

89.1%

102.3%

112.7%RM’bil

FR

S 1

39G

P3

Allowance Coverage:

• Retail Bkg: 102.4%

• Business Bkg: 121.8%

FY2007 FY2008 FY2009 FY2010 FY2011 Q1FY2012Day 1

[1 April 10]

0.00%

0.40%

0.80%

1.20%

Q1 Q2 Q3 Q4

% Gross NPL / Impaired Loans Conversion to Gross Loans

0.00%

0.60%

1.20%

1.80%

Q1 Q2 Q3 Q4

% New Gross NPL / Gross Impaired Loans to Gross Loans

New gross impaired loans formation, conversions, recoveries and write-offs; Within

expectations

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4


Note :

1 FY2004 and FY2005 financials based on gross before IIS

GP 3

FY2004 -FY2007 FY2008-FY2010 FY2011

FRS 139

0.00%

0.20%

0.40%

0.60%

Q1 Q2 Q3 Q4

% Recoveries to Avg Gross Loans

0.00%

0.50%

1.00%

1.50%

2.00%

Q1 Q2 Q3 Q4

% Write-Offs to Avg Gross Loans

Q1FY2012

Loans portfolio rebalancing continues

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

Retail Non-Retail

� 2.9% � 24.5%

34%

66%

68.5 bil

� 0.2% � 7.2% � 10.9%� 28.3%

� 29.0%

� 9.4% � 13.3% � 5.4%

� >100.0% 75.4bil

38%

62%

� 10.0%


Positive growth in Q1FY12 Contraction in Q1FY12Non-RetailRetail

Total Fixed interest rate Variable interest rate

Mar-08 June-11 Mar-08 June-11 Mar-08 June-11

Conventional 82% 79% 47% 32% 38% 48%

Islamic 18% 21% 15% 14% 0.1% 5.5%

100% 100% 62% 46% 38% 54%

Gross loan portfolio trends:

Gross Loan

Q1FY11

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

Corporate &

Institutional

Others Gross Loan

Q1FY12

Q1FY12

(RM’bil)25.7 14.5 1.0 0.8 2.2 2.7 15.0 13.6 -0.1

Q1FY11

(RM’bil)25.8 13.6 0.9 0.9 1.9 2.5 11.7 10.5 0.7

% of

composition

66%

34% 19.3% 1.3% 1% 2.9% 3.5% 20% 18% 0%

�

14.0% 13.9% 15.0% 13.9% 13.9%

71.8% 77.0% 77.4%74.4% 74.6%

2.0%0.7% 1.5% 6.9% 6.6%3.0% 1.0%

1.2% 0.6% 0.7%9.2%7.4% 4.9%

4.3% 4.2%

FY08 FY09 FY10 FY11 Q1FY12

Improving funding composition

5.1 2.5 3.08.0 8.2 [10%]

23.6 25.5 26.8

29.730.2

[36%]

20.2 26.329.6

27.428.8

[34%]9.0

10.911.2

16.316.4

[20%]


Rising individual & government depositsRM'bil

95.1%

70.7

81.383.6

65.2

57.9

More stable funding and well distributed debt maturities



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


Term funding Individuals Biz enterprises Government

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

* Based on AmIslamic Bank Bhd maturity profile

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

• Q1FY12 = 95.1%

• FY11 = 95.2%

• FY10 = 93.9%

• FY09 = 91.6%

• FY08 = 87.8%*

� Issued RM2.92 bil Senior Notes (RM7 bil

program) and RM550 mil Senior Sukuk

(RM3 bil program) since early 2010

-

1.0

2.0

3.0

4.0

5.0

6.0

7.0

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19+

RM'bil

Debt Capital Term Funding Loans sold to Cagamas

Lengthening debt capital & term funding profile

Issuance Maturity

ROE ROA

Delivering higher shareholders’ returns

11.5% 11.7% 11.5%13.6%

17.0%1.02% 1.04% 1.13%

1.39%

1.69%

FY08 FY09 FY10 FY11 Q1FY12 FY08 FY09 FY10 FY11 Q1FY12

ROE expected to

normalise to

MTA guidance


EPS, Basic

Sen/Share

Dividend, Gross

Sen/Share

6.0

sen

8.0

sen

10.5

sen

18.0

sen

18% 19%

28%

40%

Total Dividend Dividend Payout Ratio

FY08 FY09 FY10 FY11 Q1FY12 FY08 FY09 FY10 FY11

28.2

sen

31.6

sen

34.7

sen

44.7

sen

14.8

sen

*

* Not annualised

7.7% 8.1% 8.0% 7.6%

9.7% 10.3% 10.2% 9.7%

15.2% 15.8%14.4%

13.7%

Pro-forma AmBank Group Banking Entities*Capital adequacy :

Capital levels positioned for Basel III and target payouts

Estimated capital ratios^

(include Q1FY12 unappropriated profits)

Risk Appetite

Framework Targets

RWCAR: 14.1% 14% ± 2%

Tier 1 CAR: 10.1% 10% ± 1.5%

CET 1 Ratio: 8.0 % 8% ± 1%


FY2009 FY2010 FY2011 Q1FY2012

by Legal Entities1

Tier 1 CAR RWCAR

AmBank (M) Berhad 8.8% 13.4%

AmInvestment Bank Berhad 25.2% 25.2%

AmIslamic Bank Berhad 8.0% 12.5%

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

1: Q1FY2012 (after deducting proposed dividend)

Capital adequacy

� Capital management plan :

1. Optimise capital profile & buffer

2. Increase scenario modeling

3. Streamline corporate structure

(e.g. AmIslamic)

4. Develop dynamic dividend policy

5. Proactively manage Basel III

requirements

CET 1 Ratio Tier 1 CAR RWCARFee Income

^Estimated capital ratios include Q1FY12 unappropriated profits of AmBank (M) Bhd Group, AmIslamic Bank & AmInvestment Bank Group




Contents





RETAIL*

Develop a liability-led

business, grow assets in

BUSINESS*

Grow diversified & profitable

assets, increase deposits, fee

TRANSACTION*

Become Top 5 Banking Service

Provider in Malaysia by FY2016

CIB*

Deliver innovative and quality

solutions, increase ‘share of

Medium Term Aspiration

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

As measured by Customer Satisfaction Sound Financial PerformanceWell diversified & Sustainable

Growth

Our Aspirations…



targeted segments & expand

Wealth Management


based business & international

trade finance leveraging on

ANZ

Provider in Malaysia by FY2016

with 10% market share


wallet’, target high-profile’ and

high value clients and leverage

ANZ for x-border businesses

INVESTMENT*

Deliver comprehensive

solutions, lead in capital

markets, funds management,

stock broking and enhance

domestic and overseas

distribution via ANZ

MARKETS*

Deliver substantive, integrated

and client-led business with

full suite of FX, Rates,

Commodities and FI offerings

with ANZ collaborations

LIFE ASSURANCE*

Become the top life insurer for

service; an industry

benchmark for TCF, strong

infrastructure, sufficient scale

to be relevant and credible

whilst maintaining margins

and cash profile

GENERAL INSURANCE

Provide insurance solutions to

our customers and business

partners that meet their

insurance needs and exceed

their service expectations

DIV

ISIO

NA

L A

SP

IRA

TIO

NS

* Conventional & Islamic

GROWTH LEVERS

LEVERAGE INTERNATIONAL

CONNECTIVITY

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

INVEST TO GROW INCOME

• Develop customer centric business models• Enhance wealth management business• Carve out ‘Transaction Banking’ as a division focusing on cash management &

international trade • Develop new family Takaful business with FL• Introduce new products and enhance relationship teams

1

2

STRATEGIC INITIATIVES

Business transformation and growth plans


• Introduce new products and enhance relationship teams

INCREASE CUSTOMER

SHARE OF WALLET

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

CAPITALISE ON ETP

• Target ETP projects in NKEA sectors• Key focus areas – loans, bridging finance and advisory services for PDS issuances /

capital market activities and private pension industry

UPGRADE CAPABILITY &

PRODUCTIVITY

• Invest in human capital development• Enhance account planning system for business growth• Consolidate operations to improve efficiencies

3

4

5

• Accelerate CASA & deposit growth, profitable asset growth and lower credit cost over time

• Diversify retail income, continue to invest for medium term outcomes

• Forecasting increase profit contribution for FY2012 due to lower impairments

• Income growth arising from larger asset base and growth in non-interest income

• Higher deposit growth and increase cross-selling

• Forecasting increase profit contribution in FY2012 underpinned by rising incomes

• Income growth from non-interest income and larger asset base

• Focus on cross-sell and grow deposits, increase regional business via collaboration with ANZ

Maintaining profit targets for FY2012

RETAIL*

BUSINESS*

CORPORATE &

FY2012 PRIORITIES

� Profitable growth and rebalancing

� Diversification and new business development

� Non-interest income and deposit growth

� Customer centricity


• Focus on cross-sell and grow deposits, increase regional business via collaboration with ANZ

• Anticipating increase in profit contribution in FY2012 underpinned by rising incomes

• Leverage on upturn in capital market and new initiatives

• Increase regional business through closer collaboration with ANZ

• Anticipating better profits for FY2012 driven by higher fee & capital market activities

• Increase product offerings, higher contributions from FX and derivatives

• Expecting strong profit growth in FY2012 underpinned by capital market and trading activities

• Launch new products, improve efficiency and governance, and leverage strategic partnership with FL

• Expecting flat profit contribution for FY2012 post restructuring of business operating model

• Higher contributions from new products & increase in share of wallet from retail & biz customers

• Expecting good growth in premium and profits for FY2012

CORPORATE & INSTITUTIONAL*

INVESTMENT*

LIFE ASSURANCE*

GENERAL INSURANCE

MARKETS*

* Conventional & Islamic

FY07 FY08 FY09 FY10 FY11 Q1 FY12MTA

FY2012 - FY2014

PATMI*

ROE

Medium Term Aspiration (MTA) and estimates

Investing for

growth over

- RM 282.5

mil

RM 668.5

mil

RM 860.8

mil

RM 1,008.6

mil

RM 1,342.8

mil

RM 441.5

mil

14 – 16%

CAGR

- 5.8% 11.5% 11.7% 11.5% 13.6% 17.0% 14 – 16%

Actual


CTI

Net NPL ratio /Gross

impaired loans

Dividend:Gross

Payout

*

*PATMI: profit after tax and minority interests

growth over

medium term

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

6.2% 3.7% 2.6% 1.5% /

3.8% 3.3% 2.96% 2 – 2.75%

5.0 sen /

share

(loss year)

6.0 sen /

share

18.3%

8.0 sen /

share

19.0%

10.5 sen /

share

28.1%

18.0 sen /

share

40%

- 40 – 50%

Payout

Outlook & Priorities

OUTLOOK

• Strength in private investment & private consumption and

prospective ETP gains to sustain Malaysia’s economic growth (GDP

CY2011e: circa 5%1 )

• Domestic economy not immune to external headwinds with

continued weaker global outlook

• Monetary policy remains accommodative, OPR @ 3% & SRR @ 4%

today, with potential for further tightening

• Banking sector set to benefit from ETP & CMP 2 over time, more

lending & debt market activities, private sector involvement & robust

domestic consumption etc.


1. In-house view

domestic consumption etc.

• Irrational pricing in selected segments, a concern

PRIORITIES

• Profitable growth and rebalancing

• Diversification and new business development

• Non-interest income and deposit growth

• Customer centricity




Contents





Retail Banking: Improved asset quality main contributor to higher profits

� Income – focus on profitable & viable

segments and pricing for risk

� Irrational pricing impeding loans growth

� Expenses – expanding customer touch-

Develop a liability-led


targeted segments and

expand Wealth Management

PATPBPExpensesIncome

Composition to Group 45.6% 37.1% 33.1%40.3%

RM'mil Q1FY11 Q1FY12

Income 448.8 446.9 -0.4%

Expenses 174.6 194.4 +11.3%

PBP 274.2 252.5 -7.9%

Impairments 98.0 51.2 -47.8%

Q1FY12 vs

Q1FY11


Expenses – expanding customer touch-

points, investing in technology & human

capital

� Lower impairments driving higher profits

� Continued strong CASA growth

Q1FY11 results Positive growth in Q1FY12 Contraction in Q1FY12

Impairments 98.0 51.2 -47.8%

PBT 176.2 201.2 +14.2%

PAT 132.2 150.9 +14.1%

Gross Loans / Financing 44,423.5 45,337.1 +2.1%

Net Loans / Financing 43,151.4 44,018.7 +2.0%

Gross Impaired Loans 1,358.6 1,287.9 -5.2%

Customer Deposits 31,486.3 34,690.9 +10.2%

CASA Deposits 6,792.5 8,025.6 +18.2%

ROA 1.21% 1.36% +0.15%

CTI 38.9% 43.5% +4.6%

Allowance Coverage 93.6% 102.4% +8.8%

2.84%

Business Banking: Strong income growth

� Higher profits backed by strong net

interest and fee income growth, and

better recoveries

� Expenses – mainly from increase in staff

Grow diversified & profitable


based business &

international trade finance

leveraging on ANZ


Composition to Group 13.1% 6.6% 17.2% 18.5%


Income 109.9 145.0 +31.9%

Expenses 24.8 28.0 +12.9%

PBP 85.1 117.0 +37.5%

Impairments 8.7 4.5 -48.3%

PBT 76.4 112.5 +47.3%

Q1FY12 vs

Q1FY11


� Expenses – mainly from increase in staff

cost

� Good deposits and CASA growth,

leveraging on better relationship building

Income contribution

PBT 76.4 112.5 +47.3%

PAT 57.3 84.5 +47.5%



Gross Impaired Loans 123.6 238.8 +93.2%


CASA Deposits 1,292.8 1,417.2 +9.6%

ROA 2.03% 2.34% +0.31%

CTI 22.6% 19.3% -3.3%

Allowance Coverage 135.1% 121.8% -13.3%

1.59%

Lending &

deposits, 74%

Trade

Services, 25% Cash

Management

& others, 2%


� Diversified loans portfolio – good support

for income growth

� Higher income contributions from lending,

International Business & Asset

Management

� Impairments benefitted from lower

collective impairment

Corporate & Institutional Banking: Good income & deposits growth

Deliver innovative and quality


wallet’, target high-profile and

high-value clients and leverage

ANZ for x-border businesses




Income 82.4 100.1 +21.5%

Expenses 25.0 29.7 +18.8%

PBP 57.5 70.4 +22.4%

Impairments (9.2) (22.5) +>100.0%

Q1FY12 vs

Q1FY11


collective impairment

Income contribution

* Services include : large corporate lending& deposits,

financial institutions group, offshore banking, international

business, private equity, REITs and loan syndication

Lending &

deposits,

75%

Int. Biz,

19%Asset

Mgmt,

6%


PBT 66.6 93.0 +39.6%

PAT 50.8 71.5 +40.7%




ROA 1.89% 2.04% +0.2%

CTI 30.3% 29.6% -0.7%

Ave Assets Management 1,403.5 1,501.5 +7.0%

• Better performance leveraging from pick-

ups in capital and equity market

conditions

• Good and diversified contributions from all

divisions

• Expenses – higher staff cost & incentives

linked to better financial performance

Investment Banking: Strong profit growth leveraging on capital & equity markets

Deliver comprehensive

solutions, lead in capital

markets, funds management,

stock broking and enhance

domestic & overseas

distribution via ANZ




Income 75.1 109.1 +45.3%

Expenses 39.3 50.5 +28.5%

PBP 35.8 58.6 +63.7%

Impairments 0.4 (0.5) ->100.0%

PBT 35.4 59.1 +66.9%

Q1FY12 vs

Q1FY11


linked to better financial performance

Income contribution

1 Including AmInvestment Management, AmInvestment Services, AmIslamic Funds Management & private banking

Source : Malaysia Association of Asset Management & Lipper Hindsight

PBT 35.4 59.1 +66.9%

PAT 26.3 44.2 +68.1%

CTI 52.4% 46.3% -6.1%

Ave Assets Management 23,529.3 29,933.9 +27.2%

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

Bursa M'sia 59,429.3 72,791.5 +22.5%

Future KL index 367.3 384.9 +4.8%

IB Broking 4,707.1 4,464.5 -5.2%

AmFuture 75.5 90.0 +19.2%

Market Share as at:

IB Broking 7.8% 6.1% -1.7%

AmFuture 20.3% 22.6% +2.3%

1

Debt Cap

Mrkt,

17%

Corporate

Finance,

10%

Equity,

22%

Broking &

Futures,

22%

Fund

Mgmt,

22%

Private

Banking,

6%


� Higher contributions from fixed income

and FX

� Expenses reflect continuous investment in

FX, rates, derivatives & commodities

establishment

Markets: Well diversified income growth

Deliver substantive, integrated

and client-led business with

full-suite of FX, Rates,

Commodities and FI offerings

with ANZ collaborations




Income 89.9 130.7 +45.4%

Expenses 13.1 17.4 +32.8%

PBP 76.8 113.3 +47.5%

Impairments (7.3) (0.2) -97.3%

Q1FY12 vs

Q1FY11


Income contribution

Fixed Income,

71%

Foreign

exchange,

18%

Derivatives,

7%

Others, 4%


Impairments (7.3) (0.2) -97.3%

PBT 84.1 113.5 +35.0%

PAT 63.3 85.2 +34.6%

CTI 14.6% 13.3% -1.3%

ROA 3.18% 5.87% +2.7%

PAT : Fx and Derivatives 7.4 17.4 +>100%

Total Group:

Financial assets HFT 2,737.9 6,554.5 +>100%

Financial investments

AFS 7,593.7 4,423.0 -41.8%

Financial investments

HTM 199.5 153.4 -23.1%

Life Assurance: Increasing support to Bancassurance and better performing agencies

To be the top life insurer preferred

for service; an industry benchmark

for TCF, strong infrastructure,

sufficient scale to be relevant and

credible but whilst maintaining

margins and cash profile

� Strategic focus on

Composition to Group

PATIncome

3.7%2.0%


Income 23.8 22.0 -7.6%

Q1FY12 vs

Q1FY11


* Life assurance shareholders’ fund accounts

� Strategic focus on

� Business growth initiatives centered

on Bancassurance

� Providing enhanced support to better

performing agency force

� Improving compliance and

infrastructure platforms


PAT 23.7 16.7 -29.5%

Life Assurance

fund assets 2,226.1 2,584.7 +16.1%

CAR ratio 232.7% 214.7% -18.0%

Gross written premium 129.0 133.9 +3.8%


Income 42.6 52.0 +22.1%

Expenses 20.7 23.1 +11.6%

PBP 21.9 28.9 +32.0%

Q1FY12 vs

Q1FY11

General Insurance: Higher income

To provide insurance solutions

to our customers and business

partners that meet their

insurance needs and exceed

their service expectations




PBP 21.9 28.9 +32.0%

Impairments - 0.5 +>100.0%

PBT 21.9 28.4 +29.7%

PAT 12.8 22.2 +73.4%

CTI 48.6% 44.4% -4.2%

General Insurance fund

assets1,041.5 1,177.3 +13.0%

Claim ratio 67.5% 66.3% -1.2%

Management expense

/ earned premium 15.2% 15.4% +0.2%

� Higher income - better underwriting

profits and lower claim expenses

� Higher expenses – higher staff cost and

continue investment in technology &

operations to improve efficiency & service

delivery


Group Operating Segments

Enablement functions

governing and supporting

delivery of improving

divisional performances

� Income growth impacted by higher

funding cost (e.g. SRR), partly offset by

higher recoveries



Composition to Group 19.5% 2.8% -4.2%9.2%


Income 117.3 101.7 -13.3%

Expenses 83.4 83.0 -0.5%

Q1FY12 vs

Q1FY11


higher recoveries

� Prudently accelerating provisions on

specific accounts


PBP 33.9 18.7 -44.8%

Allowances 1.8 37.9 +>100.0%

PBT 32.1 (19.2) ->100.0%

PAT 15.3 (19.3) ->100.0%

PATMI 1.9 (33.7) ->100.0%

Transaction Banking*: Strong profits & deposits growth

To become top 5 Banking

Service Provider in Malaysia

by FY2016 with 10% market

share

� Income – focus on trade finance services &

cash management

� Impairments benefitted from bad debts

recovered and lower collective impairment


Composition to Group 5.3% 1.8% 7.5% 9.2%


Income 47.4 58.8 +24.1%

Expenses 7.4 7.6 +2.7%

PBP 40.0 51.2 +28.0%

Q1FY12 vs

Q1FY11


* Performances integrated to divisional outcomes.

Income contribution

Trade

Services,

62%

Cash Mgmt,

38%


Impairments 1.5 (5.0) ->100.0%

PBT 38.6 56.2 +45.6%

PAT 28.9 42.1 +45.7%


Trade Finance 3,528.5 4,168.2 +18.1%

Cash Management 10,993.6 14,319.8 +30.3%

CASA Deposits 1,733.9 2,225.4 +28.3%

ROA 3.44% 4.09% +0.65%

CTI 15.5% 13.0% -2.5%


Islamic Banking*: Good financing and deposits growth

To become the Islamic Bank of

choice and ensure a high

degree of value for our

customers, employees &

stakeholders


� Higher impairment since mid-FY2011

due to structural changes associated

with COOP lending industry resulting in

16.8% 17.4% 12.9%17.2%


Income 194.2 190.0 -2.2%

Expenses 76.5 71.7 -6.2%

PBP 117.7 118.2 +0.4%

Impairments 37.3 38.3 +2.5%

Q1FY12 vs

Q1FY11


with COOP lending industry resulting in

increased provisioning under FRS 139

methodology

* Performances integrated to divisional outcomes.


PBT 80.4 80.0 -0.5%

PAT 59.3 58.7 -1.1%

Net Financing 12,785.7 13,975.3 +9.3%

Gross Impaired Financing 191.6 289.4 +51.1%


CASA Deposits 2,047.1 2,601.1 +27.1%

ROA 1.34% 1.20% -0.14%

CTI 39.4% 37.8% -1.6%

Allowance Coverage 159.4% 178.7% +19.3%

1.80%




Contents





Strategic Business Transformation: Good Progress

12 months

(FY 2008)

24 months

(FY 2009)

• Set Group’s Medium Term Aspirations (MTA)

• Agreed Group’s transformation strategy, agenda and targets

• Realigned auto financing business towards profitable growth

• Improved asset quality

Strategic Business

Transformation

High Priority

Growth Initiatives

Governance &

Enablement

Functions

• Realigned growth towards profitable and viable segments

• Realigned Markets Fixed Income business model

• Reset Mortgage business strategy and action plans

• Consolidated Group balance sheet activities within commercial bank

Split composite insurance license to General and Life


36 months

(FY 2010)

48 months

(FY 2011)

• Split composite insurance license to General and Life

• Deposits as profit centres across Group

• Realigned customer ownerships and focus

• Proactively strengthened capital and liquidity management

• Repositioned balance sheet for rising interest rates

• Completed structural realignment to improve target segment focus

• Develop customer centric retail business model - part of AmHorizon

• Implementing account plans for business customers to increase SOW

• Expanding product offerings and build new capabilities (e.g. Markets)

High Priority Growth Initiatives: Implemented To-Date

12 months

(FY 2008)

24 months

(FY 2009)

• Created new profit centre based retail branch distribution model

• Setup ‘deposits’ as profit product across all divisions & grow CASA

• Created a separate Corporate and Institutional Banking (CIB) Division

• New FX business in collaboration with ANZ

• Enhanced cash management offering via Gross Payroll system

• FL brought in as new life strategic business partner

Strategic Business

Transformation

High Priority Growth

Initiatives

Governance &

Enablement

Functions


36 months

(FY 2010)

48 months

(FY 2011)

• FL brought in as new life strategic business partner

• Accelerated growth from GLC, GLIC and MNC

• Build scale

• New Rates business in collaboration with ANZ

• Distribution footprint expansion (particular focus on 7-11 ATM’s) &

alternative channels

• Commenced leveraging ANZ for International connectivity

• Strengthen wealth management biz and develop new strategies

• Enhancing international trade and cash management business

• Develop new family Takaful business with FL

Governance and Enablement Functions Streamlined:

Supports Better Decision Making

12 months

(FY 2008)

24 months

(FY 2009)

• Privatised AmInvestment Bank as part of migration to universal banking

platform for greater synergies

• Consolidated / simplified governance committee structures

• Delivered line of business budgets and performance reporting

• Created a Group PMO to prioritise and manage key strategic initiatives

• Established Advance Risk Recognition Program (ARRP)

• Strengthened risk disciplines via Group Risk Appetite Frameworks

• Separated ALCO, capital and balance sheet management from Markets

• Delivered Peer Bank relative performance benchmarks

Implemented short and long term performance incentives

Strategic Business

Transformation

High Priority

Growth Initiatives

Governance and

Enablement Functions


36 months

(FY 2010)

48 months

(FY 2011)

• 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

• Implemented FTP system aligned to balance sheet strategies

• Developed leadership bench-strength and succession planning

• Implemented Operational Risk Incident Reporting system and Basel II capital

calculator

• Consolidating some Group Support into Centres of Excellence

• Implementing Basel III, capital allocations and new ALM system

• Finalize vendor and commence core banking system replacement

ADVANCED RISK RECOGNITION PROGRAM INITIATIVESKEY AREAS

GOVERNANCE• A restructured independent Group Risk Management Department, headed by the Chief Risk Officer.

• Executive Management and Board sub-committees were streamlined and charters modified to enhance overall

governance.

• Established a model validation team to regularly review all material risk models within the Group.

UPGRADING RISK INFRASTRUCTURE

• Credit Risk Management:� Implemented new PD scorecards for retail (3rd generation) and corporate. EAD and LGD models for both retail &

corporate. New behavioural scorecards being developed for retail customers.� New financial spreadsheet tool enabling detailed financial projections and industry benchmarking.� Enhanced pricing models taking into account risk factors (risk based pricing).� New Security Indicator models developed for corporate customers.� New model execution platform to enable automated provisioning and stress testing of Retail and Corporate

exposures.• Market Risk Management:

� Implemented FX and derivatives front end system and new markets (FX, interest rates and equity) rates/price validation system.

Risk Management: enhancing risk recognition skills and asset quality


validation system.� FX & derivative limit monitoring and management system and VaR (FX, derivatives, equities) to be rolled out.� new Funds Transfer Pricing Model used to allocate funding costs.� new Asset and Liability Management system to enhance duration risk mismatches.

• Operational Risk Management:� new incident reporting system for collecting, analyzing and estimating capital requirements.

ASSET QUALITY AND PORTFOLIO

DIVERSIFICATION

• Material improvement in net NPL / gross impaired assets, provisioning charges and loan loss coverage ratio over the past four years.

• Further diversification in the loan portfolio.• Portfolio diversification strategy to grow certain selected portfolios quicker than others (eg: well rated counterparties in

CIB and Business Banking).

FUNDING & LIQUIDITY RISK MANAGEMENT

• Established a dedicated unit i.e. “Balance Sheet & Capital Management” reports to the Group Chief Financial Officer and advises the Group Asset & Liability Committee with regards to Funding, Liquidity and Capital strategy options.

• Strong improvements in: retail deposits growth; liability structure incorporating raising term wholesale funding and asset and liability duration mismatches.

RISK APPETITE STRATEGY, EXECUTION

& MONITORING FRAMEWORK

• Fine tune of risk appetite settings, clearly articulating risk / reward appetite. • Risk /reward supported by comprehensive asset writing & business strategies for each business unit. • Risk elements include - country, industry and customer single names limits, general loan underwriting standards, capital

allocation to business units and targeted returns.

25.8

11.7 1.7 3.4 4.0 2.0 1.4 0.003 1.7 13.5 3.3

42.6

25.9

68.5

12.4 5.0 2.1

17.3

5.8

33.4

75.4

Purchase of Transport Vehicles

Purchase of Res Properties

Credit Cards Personal Use Purchase of Non-Res

Properties

Purchase of Securities

Fixed Assets Consumer Durables

Construction Working Capital

Other purpose Retail Loans Business & Corporate

Loans

Total loans

25.4

2.41.7 2.1 1.1 0.002

42.0 � 1.4% � 5.7% � 0.9% � 28.0% � 25.0% � 3.1% � 16.2% � 25.8% � 24.2% � 28.2% � 73.1%

� 1.5% � 28.9%

� 10.0%

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

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

RM’bil

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

Jun-10 Jun-11


127.7 222.5

27.7 40.5 81.7

36.3 9.0 0.1 19.4 221.8 48.3

418.3 416.6

834.9

138.4

251.8

30.8 46.2 99.6 43.2 23.5

245.5

59.7

467.2 480.5

947.7

Purchase of Transport Vehicles

Purchase of Res Properties

Credit Cards Personal Use Purchase of Non-Res

Properties

Purchase of Securities

Fixed Assets Consumer Durables

Construction Working Capital

Other purpose Retail Loans Business & Corporate

Loans

Total Loans

Jun-10 Jun-11

� 8.4% � 13.1% � 11.2% � 14.2% � 21.9% � 19.1% � 0.4% � 14.2% � 21.3% �10.7% � 23.5%

9.0 0.1

� 11.7% � 15.3%

� 13.5%

Vehicles Properties Loans

Source : BNM, internal reports

RM’bil

Industry Loans Growth by Economic Purpose

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

* Based on BNM classification

0.08

0.10

4.0 4.5 8.4

59.0 67.4

4.4 5.7 10.0

65.6 75.7

Jun'10 Jun'11

� 10.8% � 26.8% � 19.3% � 11.2% � 12.2

Savings Current Account CASA Fixed Deposits Core Deposits

RM’bil

AmBank Group Deposits Growth by Type

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

5.8%7.5%

86.7%

AmBank Group Deposits

Composition

Savings

Current Account

Fixed Deposits


99.2 172.5

271.7

478.6

750.3

109.6

197.4

307.0

530.2

837.2

Jun '10 Jun '11

� 10.5% � 14.5% � 13.0% � 10.8% � 11.6%



Industry Deposits Growth by Type

RM’bil

13.1%

23.6%

63.3%

Industry Deposits Composition

Savings

Current Account

Fixed Deposits

Source : BNM, internal reports

Malaysia average lending rate vs OPR & BLRMalaysia’s GDP growth vs. ASEAN countries

8.2

6.2

5.3 6.85.5

6

4.5 6.1

6.2

5.84.7

-1.7

7.2

5.05.33.7

1.1

7.3

5

8.7

1.5

-0.8

14.5

5.2

5.12.5

-2.3

7.8

4

-3.0

-1.0

1.0

3.0

5.0

7.0

9.0

11.0

13.0

15.0

2006 2007 2008 2009 2010e 2011f

Vietnam Indonesia Malaysia Philippines Singapore Thailand

%

Malaysia’s GDP growth driven by ETP and steady domestic demand

Malaysia

12.13%

5.08%5.02% 5.07%

8.46%

2.12% 2.45%2.96%

11.63%

5.62%6.02%

6.54%

0%

5%

10%

15%

Average lending rate (commercial banks) Average OPR Average BLR


Malaysia : Key statistics 2010 2011e

GDP 7.2% 5.0%

Inflation 1.7% 3.0 – 3.5%

OPR 2.75% 3.00%

Fiscal deficit 5.6% 5.6%

Exchange rate (RM vs USD) 3.09 2.97

Unemployment rate 3.2% 3.2%

SRR 1.0% 4.0%

Sources : Bloomberg, BNM, in-house economic research

Vietnam Indonesia Malaysia Philippines Singapore Thailand

RM’bil

Malaysia household debt / GDP vs. household loans approved & impaired loans

2006 2007 2008 2009 2010 June-11

Average lending rate (commercial banks) Average OPR Average BLR

Household Impaired Loans Household Loan Approved

Gross National Savings Household Debt/GDP

23.6 19.1 16.3 13.3 11.2 10.2

92.0 117.1

143.1 159.2 184.1

103.0

37.0% 37.5% 36.8%31.0% 33.1%

68.8% 66.9% 63.7%

76.0% 75.9%

Malaysia still poses attractive investment opportunities in ASEAN region

National Savings

Rate,

as % of GDP

Real GDP Growth,

% YoY

Malaysia Thailand Singapore Indonesia Philippines Vietnam

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

33.10 33.23 30.65 30.62 46.04 46.35 33.38 34.34 20.11 18.66 34.29 32.36

7.15 5.00 7.80 3.96 14.47 5.16 6.11 6.20 7.33 4.95 6.78 6.26


Inflation

Industrial

Production Index,

% YoY

Source: World bank, IMF and various central banks data

CPI

Central Bank Rate

7.46 - 15.39 - 27.98 - 4.30 - - - - -

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

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

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

Oil, Gas & Energy

Palm Oil

Financial

Services

Communications

Content &

Infrastructure

Agriculture

Greater KL

Economic Transformation Programme : Financial Services as 1 of 12 NKEAs

Vision • Evolve to serve needs of biz &

consumers in high-income

economy

• Increase depth, regional &

global market shares in selected

niches

Aspirations • Strengthen core

• Serve needs of high-income

population

• Develop new growth sectors

• Go on the offensive

Targets • GNI contribution RM180bil

(additional 121b, 3x growth)

• New 275K jobs

(56% >RM4K income per

Financial services sector EPP

1 Revitalise equity market

2 Deepen & broaden bond markets

3 Transform development financial institutions

4 Create integrated payment eco-system

5 Service high-income population


Tourism

Business

Services

Improving

Electronics

& Electrical

Wholesale

& Retail

Education

Healthcare

(56% >RM4K income per

month)

Challenges • Lack of scale

• Lack of liquidity & diversity in

capital markets

• Low levels of financial literacy

• Competition from regional

financial centres

Enablers • RM211bil cumulative funding in

next 10 years

(4% public sector contribution)

• Attractive biz environment for

international & long-term

capital

• Talent

• Seamless regulatory

• Tax competitiveness

• Reputation

5 Service high-income population

6 Accelerate development of private pensions

7 Spur growth of wealth management

8 Kick-start & sustain asset management industry

9 Create regional champions

10 Create global Islamic finance hub

GNI = gross national income

NKEA = National Key Economic Activities

EPP = Entry Point Projects

Source : www.pemandu.gov.my

Contents

ETP roadmap

National Key Economic

Activities (NKEA)

RM661b

RM442b

RM359b

RM275b RM

1.7tril

USD188bil

USD523bil

USD138b

USD112b

USD86b

2009 GNI Entry Point (BO) Biz Other sector 2020

RM23.7K GNI

(USD6.7K)

per capita

>RM48K GNI

(USD15K) per capita

131 EPPsECONOMIC TRANSFORMATION

PROGRAMME

• RM 48k GNI per capita

• RM 1.7 trillion GNI

• 6% annual GDP growth

GROSS NATIONAL

INCOMEJOBS

• 31.6m population

• 3.3m additional jobs

• 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

ETP: overview

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


ROUND 1(25 Oct 2010)

ROUND 2(30 Nov 2010)

ROUND 3(11 Jan 2011)

ROUND 4(8 Mar 2011)

ROUND 5(19 Apr 2011)

ROUND 6(13 Jun 2011)

TO-DATE

2009 GNI Entry Point

Projects (EPP)

(BO) Biz

opportunities

Other sector

growth

2020

GNI targetTRANSFORMATIONAL

ACTIONSINVESTMENT

• 27% FDI

ETP execution gaining momentum

ETP : Economic Transformation Programme

Source : Pemandu

Initiatives

Investment

(RM’bil)

GNI Impact

(RM’bil)

Jobs Creation

TARGET

(2020)

% OF

TARGET

9 9 19 23 12 1587

(65 EPPs)131 EPPs 49.6

5.3 8.3 67.0 14.8 11.2 63.4 169.8 1, 400 12.1

0.1 84.5 32.5 20.1 16.6 66.3 220.2 1, 700 13.0

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

EDUCATION

ProjectJob

Creation

GNI Impact

(RM’bil)

Investment

(RM’bil)

AGRICULTUTRE

WHOLESALE &

RETAIL

OIL, GAS & ENERGY

• UCSI Group Integrated premium health education

cluster

0.85 1.30 2,000

• Segi Education Group Upgrade ECCE standards, training &

workforce

0.70 0.90 30,000

• JEFI Aquatech Establish JEFI Aquatech Centre & Farm,

plus Agro-Entrepreneur Programme

0.38 9.50 2,800

• Yanming Resources Increase edible bird’s nest production 0.005 0.09 103

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

• SAVE To improve energy efficiency in Malaysia 0.05 5.10 -

• RAPID Petronas crude oil refinery with capacity of 60.00 45.00 24, 000

EPP Round 6


OIL, GAS & ENERGY

BUSINESS SERVICES

HEALTHCARE

CCI

• RAPID Petronas crude oil refinery with capacity of

300,000 barrels per day

60.00 45.00 24, 000

• Strategic Acquisition Bureau Veritas acquired Scientige Sdn Bhd,

company specialized in asset integrity

management, risk & safety

0.02 0.11 550

• AMD Global Services New global services centre 0.50 - 616

• Sime Darby Sime Darby Medical Centre Ara Damansara

& Parkcity

0.28 - 1,539

• Biocon BioXcell, a custom-built biotechnology park

& ecosystem

0.50 1.97 450

• Telepresence

Exchange

Managed TelePresence Service to the

public & private sectors

0.01 - 153

• Extending Regional

Network

To lower the wholesale cost of

international & domestic bandwith

0.006 - 1,220

• Swiflet Nest Tracking Develop, test & implement new system &

standard for tracking swiftlet nests delivery

0.05 0.56 100

TOTAL RM63.35 bil RM66.31 bil 63, 531 jobsSource : Pemandu

Shareholding Structure

Amcorp Group Berhad

(16.8%)

ANZ Funds Pty Ltd*

(23.8%)

Employees Provident Fund Board

(13.3%)

Other Shareholders

(46.1%)


AMFB Holdings

Berhad

AMAB Holdings

Sdn Bhd

100% 100%100% 100% 100%

As at 30 June 2011

AmIslamic Bank

Berhad

AmInvestment

Group Berhad

AmInvestment

Bank Berhad


AmBank (M) Berhad

AmLife Assurance

Berhad

AmG Insurance Berhad

AmFamily Takaful

Berhad

100%

(Insurance Australia Group Ltd – 49%)51%

(Friends Life Limited – 30%)

(Friends Life Limited – 30%)

70%

70%

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

Foreign shareholding excluding ANZ

Mar 09 Mar 10 Mar 11 June 11

28.4% 27.1% 27.1% 26.6%

Strategic partnership with global partner, ANZ

Regional Aspirations :

Leading Super Regional Bank

Value Propositions to AmBank Group::

� Leadership & management

� 2-way customer referrals

� Joint business solutions

� Products development

� Technical expertise

� Access to regional network &

connectivity


� Capturing value:

o to Asia,

o within Asia

o from Asia

� APEA sourced

revenue to drive 25

– 30% of Group

profit

connectivity

ANZ has provided key resources and support to AmBank Group

Director

Dr. Robert John EdgarBoard

Director

Alex Thursby

Senior

Management

Deputy Group MD & Group CFO

Ashok Ramamurthy

Chief Risk OfficerAndrew Kerr

Management

Chief Operations OfficerRoss Neil Foden

Director

Mark Whelan

Outperform & Transform

( ) – number of branches & representative offices in each country as at Jan 2011

* Support role

Chief General Manager,

Transformation,

Channels & Sales

Head, Governance & Provisioning

Head, Market Risk

Head, Systems Accounting* Head, FX & Derivatives Senior General Manager,

Transaction Banking

Competitive positioning continues to strengthen

Sound size and market

position in key business

segments

Recognized brand name

& customer franchise

Wide market reach and

multiple distribution

channels

• Well diversified universal bank & # 5 largest banking group (market capitalization)

• # 4 retail bank, # 5 business and CIB lending, # 5 in Islamic Banking

• # 2 in equity & equity-linked, # 3 in debt league, # 4 in funds under management, # 3 in Malaysia

RM Islamic Bonds

• Strong customer-focus, lead in customer satisfaction

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

• Award-winning products and services

• 190 branches, #4 largest ATM network (828), 403 ATMs @ 7/11 and 146 EBC’s

• eChannels: internet banking, mobile banking and 24 hour call centre


channels

Strategic partnership with

global partner, ANZ

Solid corporate structure

& franchise value

• Pioneer in weekend banking concept and extended banking hours

• ANZ value adds through leadership & management, product development, technical expertise and

two way customer flows

• Experienced management team with key ANZ senior appointments and from other strategic

partner

• Industry experts, international and domestic best practices

• Performance based culture, all levels

• Strong key shareholders, common aspirations

• Improvement in stock valuation & upgrades in credit ratings

Experienced engagement

team

Number of commercial banking

branches

� # 4 in no. of branches

� 4 new branches in progress

� 3 AmIslamic branches

Wide market reach and multiple distribution channels

� Increased customer satisfaction via integrated & seamless channels model

� Expand branch network & self service machines footprint

� Further build & improve sales & service capabilities

Aspirations

Branch BankingE-Channels &

Contact Centre

Multiple channels

� Expand Electronic Banking Centre

at 90% of branches

� Maintain #1 provider of ATMs at 7

Eleven stores

� Best in class contact centre

� Innovative mobile & internet

banking services

385 324 251 190 187 186 141 91 90


� Tapping affluent segment ;

priority banking setup (2 Centres)

� Multi campaigns / product

launches for different segments

� Developing Wealth system to

enhance sales efficiency

� Grow sales force via additional

Wealth Specialists

Source : Company websites of peer banks / MEPS information * AmLife & AmG branches and agency offices

Note : Peer groups as at June 2011; AmBank Group as at latest practicable date

Products & Services

Wealth Management

Total #

ATMs (# 4 in no. of ATMs)

� ATMs at 7 Eleven

828

403

Electronic Banking Centers 146

Assurance/Insurance offices* 50

AmInvestment offices 14

banking services

� Comprehensive suite of retail

banking products & services

� Segment based solutions

� Accelerate payroll acquisition via

AmBank@Work

2,836 2,1181,183 828 498 358 295 205 172

MBB CIMB RHB AMMB PBB HLG EON AFFIN AFG

MBB CIMB PBB AMMB HLB RHB EON AFFIN AFG MBB CIMB PBB AMMB HLB RHB Cap EON Affin

Banking sector share price movement / target price and recommendations

Banking Sector Share Price Movement

94.1%

93.8%

66.3%

55.3%

40.2%

-0.5%

16.4%

-20.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0%

RHB

HLFG

AMMB

CIMB

PBB

MBB

KLCI(Note: 18 May 2007 vs. 30 Jun 2011)

Ratings FY2007 FY2011

Am

Ba

nk

(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/Stable/D

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

Am

Inv

est

me

nt 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/Positive

Am

Isla

mic

RAM A2/P1/Stable AA3/P1/Stable

Upgraded ratings

Target Price and Recommendations


Target Price and Recommendations

15.09AMMB HOLDINGS BERHAD

TP: target price

TP & recommendations by MIMB & INTERPAC are based on previous Bloomberg information as there is no subsequent updateSell/Underperform/Fully valued/Reduce/Underweight

Hold / Neutral / Market performBuy/Outperform/Overweight/Add

P/EPS : EPS annualized Jan 11 – June 11 P/BV : BV as at 30 June 11Source : Bloomberg as at 1 July 2011

1.84

10.99P/ EPS =

P/BV = 1.84

10.99P/ EPS =

P/BV = 6.52Market Price: RM 6.52Market Price: RM

7.10

9

RM

(32%)

160Average TP :

Buy :

Hold :

Sell : 3

(57%)

(11%)

Average TP/Average CP: 1.09

7.10

9

RM

(32%)

16Average TP :

Buy :

Hold :

Sell : 3

(57%)

(11%)

8.30 7.90 7.90 7.80 7.71 7.60 7.50 7.50 7.50 7.45 7.40 7.35 7.30 7.30 7.30 7.15 7.00 6.90 6.90 6.90

6.70 6.60 6.40 6.38 6.31 6.11 6.06

5.55

19

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

Glossary / Disclaimer of warranty and limitation of liability

Reported Performance

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

One Offs

One offs comprise those impacts on financial performance that arise from changes to :

• accounting and provisioning policies (eg 5 and 7 year rules)

• differences between economic and accounting hedges

• prior period catch ups (eg backdated salary costs)

• strategic investments and divestments (eg ANZ partnership), and

• tax and regulatory regimes (eg deferred tax asset write off due to reduction in corporate tax rates)

Underlying Performance

Underlying performance refers to the financial performance adjusted for one off impacts as above

Business Divisions

Business divisions

• comprise AmBank Group’s core operating businesses that generate profits from direct customer transactions and interactions

• have relatively more stable income streams, incur the bulk of the costs and typically have a lower risk profile

• in most instances have market shares and growth metrics that can be measured and benchmarked externally

Operating Segments

Operating segments

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


Operating segments

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

• include

• income and expenses associated with shareholder funds, loan rehabilitation and legacy businesses, plus

• costs associated with corporate, shared services and governance functions currently not charged back to the business units

The information provided is believed to be correct at the time of presentation. AMMB Holdings Berhad or AMMB Holdings or “AMMB” or its affiliates do not make any representation or

warranty, express or implied, as to the adequacy, accuracy, completeness or fairness of any such information and opinion contained and shall not be liable for any consequences of any

reliance thereon. Neither AMMB Holdings nor its affiliates are acting as your financial advisor or agent. The individual is responsible to make your own independent assessment of the

information herein and should not treat such content as advice relating to legal, accounting, and taxation or investment matters and should consult your own advisers.

Forward looking statements are based upon the current beliefs and expectations of the AMMB Holdings and are subject to significant risks and uncertainties. Actual results may differ from

those set forth in the forward looking statements. AMMB Holdings does not undertake to update the forward looking statements to reflect impact of circumstances or events that may arise

after the date of this presentation.

The information in the presentation is not and should not be construed as an offer or recommendation to buy or sell securities. Neither does this presentation purport to contain all the

information that a prospective investor may require. Because it is not possible for AMMB Holdings or its affiliates to have regard to the investment objectives, financial situation and particular

needs of each individual who reads the information contained thus the information presented may not be appropriate for all persons.

The information contained is not allowed to be reproduced, redistributed, transmitted or passed on, directly or indirectly, to any other person or published electronically or via print, in whole

or in part, for any purpose.

The term "AMMB Holdings" and “AmBank Group” denotes all Group companies within the AMMB Holdings Group and this Disclaimer of Warranty and Limitation of Liability policy applies to

the financial institutions under AMMB Holdings.

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 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


www.ambankgroup.com

Ganesh Kumar Nadarajah

Group General Manager, Group Investor Relations and Planning

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

+6012 2974799 [email protected]

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