AMMB Holdings Berhad

AmBank Group -Strategy and Progress Update

(ANZ Asia Tour)

Jun 2010

Ashok RamamurthyDeputy Group Managing Director &

Group Chief Financial Officer

Executive Summary – Strategy & Progress Update

• Grow retail assets

• Lead in investment banking business

• Leverage fixed income trading

• Good progress made in strategic business transformation

• Streamlined organization and governance to support

Pre FY 2007

FY 2008 Build &

Scale & Presence

2AMBANK GROUP – INVESTOR RELATIONS – ANZ ASIA TOUR [June 2010]

• Streamlined organization and governance to support better decision making

• Implemented a number of high priority growth initiatives

To become Malaysia’s Preferred Banking Group with International Connectivity via• Universal banking group platform• Customer centric business models• Regional connectivity via ANZ and world class “IP” and skilled

resources

*ANZ Partnership *

FY 2008 to FY 2010

Post FY 2010

AccelerateGrowth

Build &Reposition

Top 5 Malaysian banking group with diversified busi nesses

Investment BankingInvestment Banking

Retail BankingRetail Banking

Business BankingBusiness Banking

# 2

# 4

# 5

� Ranked # 2 auto financier� Ranked # 6 in housing loans � Ranked # 7 in credit cards� Ranked # 3 in personal financing� Ranked # 5 in no. of branches & # 2 in ATM network coverage

� # 5 in lending across SME and Trade� Nationwide network with 4 regional business & 12 commercial centres

► Top 3 in Malaysian Ringgit Bond league, Stock broking and Funds Management

3AMBANK GROUP – INVESTOR RELATIONS – ANZ ASIA TOUR [June 2010]

InsuranceInsurance

Islamic BankingIslamic Banking

Corporate & Institutional Banking

Corporate & Institutional Banking

# 6

# 7

# 5

General

Life

# 5

`

► New Division focusing on GLC’s and MNC’s► Niche international businesses : Singapore, Indonesia & Brunei► Other businesses include REITs and private equity

� Ranked # 6 in general insurance premiums� Ranked # 3 in motor insurance premiums� Ranked # 7 in life assurance premiums � Strategic partners : IAG in general and Friends Provident in life insurance

� Syariah based banking products and services � # 2 in Islamic credit cards� Recently set-up Islamic funds management and banking business in Brunei

Good progress made in strategic business transforma tion

12 months

(FY 2008)

24 months

(FY

� Agreed on vision and aspirations

� Set up transformation strategy, agenda and top down targets

� Fixed HP business

� Improved asset quality

� Realigned growth towards profitable and viable segments only

� Fixed Markets Fixed Income business model

� Reset Mortgage business strategy and action plans

4AMBANK GROUP – INVESTOR RELATIONS – ANZ ASIA TOUR [June 2010]

(FY 2009)

36 months

(FY 2010)

� Reset Mortgage business strategy and action plans

� Consolidated Group balance sheet activities within Commercial bank

� Split composite insurance license to General and Life

� Created deposits as a profit centre

� Realigned customer ownerships and focus across all Divisions

� Proactively strengthened capital and liquidity management

� Repositioned balance sheet for rising interest rates

Streamlined organization and governance to support b etter decision making

12 months

(FY 2008)

� Privatised AmInvestment Bank

� Consolidated Group support into Centres of Excellence

� Consolidated / simplified governance committee structures across entities

� Delivered line of business budgets and performance reporting

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

24 months

� Established Advance Risk Recognition Program (ARRP)

� Strengthened risk disciplines via Group Risk Appetite Frameworks

5AMBANK GROUP – INVESTOR RELATIONS – ANZ ASIA TOUR [June 2010]

months (FY

2009)� Separated ALCO, capital and balance sheet management from Markets

� Delivered Peer Bank relative performance benchmarks

� Implemented short and long term incentives aligned to performance via MTA

36 months

(FY 2010)

� Delivered 3rd generation retail scorecards and new market risk models

� Commenced PD, LGD & EAD models for retail and non-retail

� Implemented a new FTP system aligned to balance sheet strategies

� Developed leadership bench-strength and succession planning

Implemented a number of high priority growth initia tives

12 months

(FY 2008)

24 months

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

� Developed a new FX business in collaboration with ANZ

� Implemented new profit centre based retail branch distribution model

� Accelerated CASA growth via aligning profitability and incentives

6AMBANK GROUP – INVESTOR RELATIONS – ANZ ASIA TOUR [June 2010]

months (FY

2009)

36 months

(FY 2010)

� Accelerated growth from GLC, GLIC and MNC

� Acquiring an infill general insurance business (MAA) and build-scale

� Developed a new Rates business in collaboration with ANZ

� Developed a new FX business in collaboration with ANZ

� Enhanced cash management offering via Net Payroll system

� Brought in a new life business partner, Friends Provident Fund plc

47.6 bil 52.6 bil 56.9 bil 64.4 bil 13.1 % 10.6 %

Transformational changes have delivered results

FY07 FY10FY08 FY09 CAGR (FY07 – FY10)

Change (FY09 vs FY10)

Per

form

ance

PATMI

EPS

ROA

ROE

Net Lending

-0.3 bil 0.7 bil 0.9 bil 1.0 bil 17.2 % 21.9% 1

-5.8 % 11.5 % 11.7 % 11.5 % -0.2 % flat

-0.37 % 0.82% 1.04% 1.13% 0.09% 0.38 %

-13.3 sen 28.2 sen 31.6 sen 34.7 sen 9.8 % 10.0 % 1

ACE Ratio3 : 5.8% ACE Ratio3 : 8.2%

7AMBANK GROUP – INVESTOR RELATIONS – ANZ ASIA TOUR [June 2010]

47.6 bil 52.6 bil 56.9 bil 64.4 bil 13.1 % 10.6 %

42.4 bil 55.8 bil 64.1 bil 70.3 bil 2 9.6% 18.4 %

5.3 bil 6.3 bil 6.8 bil 8.4 bil 23.9 % 16.3 %

6.2 % 3.7 % 2.6 % 1.5 % -1.1 % -1.2 %

10.1% 14.1 % 15.2 % 15.8 % 0.6 % 1.4 %

112.3 % 94.3 % 88.8 % 91.7 % 2.9 % -5.2 %

Note :1 CAGR based on underlying PATMI of RM556.9 mil in FY07 and RM1,009.4 mil in FY102 Includes Senior Notes of RM1.42 bil issued as at FY20103 Banking entities only

Gro

wth

Ris

k, C

apita

l &

Fun

ding

P

rofil

e

Net Lending

Customer Deposits 2

CASA

Net NPL Ratio

RWCR

LD Ratio

1. Higher lending & increased capital market activity

1. Increasing global optimism but potential for continuing volatility

2. Acceleration in Malaysian economic recovery

3. GDP 20101 : Circa 8%, New Economic Model, monetary policies & better-than-expected exports

4. OPR increase of 25 bps each in March and May 2010; further 25 to 50 bps hike expected in next 12 months

AmBank: What is ahead …

Malaysia : Increasing optimism

8AMBANK GROUP – INVESTOR RELATIONS – ANZ ASIA TOUR [June 2010]

2. Competitive with some irrational pricing

3. Stronger regional recoveries and NEM impact

4. Expecting Basel III pronouncements

1. Leverage strategic themes & improving economy

2. Better positioned for rising interest rates but Basel III could slow down achievement of ROE targets

3. Enhanced risk, governance and systems

4. Leverage regional ANZ connectivity for new businesses

Industry :Expanding

AMMB : Leverage tailwinds

Notes : 1 Based on external reports

� Develop a liability-led business, grow assets in targeted segments and expand wealth management

� Grow diversified & profitable assets, increase liabilities, fee base business & international trade finance leveraging on ANZ

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

Retail Banking*

Business Banking*

Corporate & Institutional

Banking

MTA 1 : Malaysia’s Preferred Banking Group with Internation al Connectivity

� Deliver comprehensive solutions, lead in capital markets, funds management, stock broking and Investment

9AMBANK GROUP – INVESTOR RELATIONS – ANZ ASIA TOUR [June 2010]

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

Investment Banking

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

Markets & Treasury*

� Leverage Friends Provident to deliver premium product & customer propositions & improve efficienciesLife Assurance

� Leverage Insurance Australia Group to become a scale specialist in motor and niche specialist in commercial and non-motor lines

General Insurance

* - Conventional + Islamic1 - Medium Term Aspirations FY 2010 – FY 2015

AmBank Group well set to deliver accelerated growth

1. Favorable Malaysian economy

2. Foundations built for growth

3. Clear strategies and plans (MTA)

10AMBANK GROUP – INVESTOR RELATIONS – ANZ ASIA TOUR [June 2010]

3. Clear strategies and plans (MTA)

4. Regional connectivity with ANZ

5. Disciplined execution

APPENDICES

11AMBANK GROUP – INVESTOR RELATIONS – ANZ ASIA TOUR [June 2010]

Net interest income 1,797.1 2,085.5 2,289.2 2,518.5 +10.0%

Fee and comm 461.3 582.1 511.2 618.2 +20.9%

Inv & trading 340.2 245.6 6.6 298.5 +>100%

Ins business 84.7 94.1 121.3 123.7 +2.0%

Others 61.6 28.8 (0.9) 18.2 +>100%

2010 Financials – strong income growth and conservat ive provisions

REPORTED

FY07 FY08 FY09 FY10 FY09 vs FY10RM mil

12AMBANK GROUP – INVESTOR RELATIONS – ANZ ASIA TOUR [June 2010]

Others 61.6 28.8 (0.9) 18.2 +>100%

Total income 2,744.9 3,036.1 2,927.4 3,577.0 +22.2%

Expenses 1,066.6 1,221.3 1,268.8 1,501.4 +18.3%

PBP 1,678.3 1,814.8 1,658.6 2,075.7 +25.1%

Provisions 1,762.9 620.4 441.0 699.0 +58.5%

PATMI (282.5) 668.5 860.8 1,008.6 +17.2%

PATMI 556.9 837.4 840.8 1,009.4 +20.1%

Note :

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

UNDERLYING 1

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%

FY10 vs

FY09

Diversified and sustainable contributions from all divisions

PATMI : Growth contributed by all business division s

13AMBANK GROUP – INVESTOR RELATIONS – ANZ ASIA TOUR [June 2010]

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%

FY09 results

Favourable growth in FY10

Unfavourable growth in FY10

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

Asset quality now superior to industry average

3.2 2.0 1.5 1.0

56.6%

67.3%75.1%

99.5%

-60%

-20%

20%

60%

100%

-

5

10

15

5.53

3.60 2.431.87

Asset Quality Indicators – Gross and Net NPL, Loss C overage and Charge to P&L

14AMBANK GROUP – INVESTOR RELATIONS – ANZ ASIA TOUR [June 2010]

6.2%

3.7%

2.6%1.5%

10.4%

6.3%

4.1%

2.8%3.19%

0.97% 0.60% 0.88%

0%

5%

10%

15%

20%

-60%-

RM'bil Gross NPL Net NPL Loan Loss Coverage

FY 2007 FY 2008 FY 2009 FY2010

FY10 / FY09 change :Gross NPL / NPF ratio �1.3%Net NPL / NPF ratio �1.1%Net Provisions charge

�0.28%Gross NPL ratio

Net NPL ratio

Net provisions charge

FY 07 FY 08 FY 09FY 10Actual

FY 2011Medium Term

Aspirations (MTA)

-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% *

PATMI

ROE

Medium Term Aspirations – key financials

15AMBANK GROUP – INVESTOR RELATIONS – ANZ ASIA TOUR [June 2010]

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

CTI

Net NPL

Ratio

Dividend

gross /

payout

* *

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

**