Maybank Investor Day –Maybank Singapore

A story of Maybank Singapore 3 Sep 2012

• Overview of Maybank Singapore• Our History • Our Strengths

• Our Performance Drivers

• Going forward – Regionalization Initiatives

Agenda

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• Started operations since 1960 as a full licensed commercial bank with itsfirst branch opened at South Bridge Road

• Expanded footprint from a “coffee–shop” bank to a niche market leaderwith contemporary branches of unique branch concept and atmospherics

• Awarded Qualifying Full Bank (QFB) status by the MAS in 2001 to increasepresence in mass retail market

• Partnered other QFBs since 2002, to share ATM network, with a combinedreach of more than 140 ATMs

Our History of over 50 years

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Woodlands

Yishun

Kovan

Tampines

Bedok

Choa Chu Kang

Jurong East

Jurong PointClementi

Chinatown

Maybank Tower

Geylang Serai

Robinson

North Bridge

Balestier

Marine Parade

Textile Centre

HDB Hub

Bukit Timah

Holland Village

Ang Mo Kio

Nex

Our Strategic Retail Presence – operate one of the largest networks

of branches and ATMs with 27 service locations (22 Branches & 5 Offsite ATMs)

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Core Strengths as a Niche Market Player– asset size of S$40 billion and staff strength of over 1,400 as of Jun 12

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1. Global Wholesale Banking holds traditional strengths in areas of– Construction & Real Estate Property Development

– Commerce & Services

– Trade finance

– Vessel Financing

2. Consumer Banking Developments– Market Leader in Auto Finance

– Making market presence in Housing Loan, Cards

– Wealth Management Business

3. Focus on Organizational Excellence

4. Integrated efforts in community giving (Corporate Social Responsibility)

For every four locally financed vehicles, one isfinanced by Maybank Singapore

Maybank auto loan business in the localmarket can be traced back 50 years ago.Currently the business is worth close to 4billion, almost equivalent to the bank’shousing loans business – a total of 4 billion.

~ Lianhe Zaobao 5 Sept 2010

Others

BII Indonesia

Singapore46%

Others

Singapore59%

BII Indonesia

Singapore 13%

Malaysia

BII Indonesia Others

Contribution to Maybank Group’s PBT

Contribution to International PBT Composition of International Loans

Our contribution to Group & International – leading contributor in terms of profit and loan portfolio as of Jun 12

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Our Beginning from Ground Zero – showing strategic resilience amidst volatile market conditions

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(100)

0

100

200

300

400

-5

0

5

10

15

20

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

Singapore GDP Growth, % MBS Pre-tax Profits, S$m (RHS)

Our Overarching Vision and Mission

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Group Vision, Mission

Maybank Singapore Mission

Maintain Leadership in specific products &Markets

Compete Effectively with Regional & GlobalPlayers in Singapore

TIG

ER V

alue

s

Vision

Mission

Objectives

Systems and Process

CONTROLCOLLABORATION

VALUE CREATION

People Excellence Engaged Staff

Visionary & Collaborative Leadership

Strategic Planning guided by MVV, on realism, clarity and sustainability

Organizational Culture

Community Giving

Our Underlying Formula – the making of our organization that is more than the sum of our parts

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People ProcessResults Customer>

InnovationExcellence Driven by our passion for

constant Improvement

Committed Innovation Focus

ServiceExcellence Customer Centricity

Customer Engagement

Service Benchmarks

Organizational Excellence

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Achieving Organizational Excellence

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Maybank is the first bank in Singapore to achieve all four certifications inBusiness Excellence - Singapore Quality Class, Singapore ServiceClass, People Developer and Singapore Innovation Class at an enterpriselevel.

Maybank Singapore is also the first and only winner to be conferred the2011 People Excellence Award at an enterprise level.

“

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• Our Performance Drivers • sustaining profitability with niche focus

Agenda

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Building & Construction - Corresponding growth in our construction portfolio as Singapore renewed and expanded its infrastructure over the years

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0

2

4

6

8

10

12

-10

0

10

20

30

40

50

60

2007 2008 2009 2010 2011 2012

Maybank Singapore Market Share, % (RHS) Industry Growth, % Maybank Singapore Growth , %

Source: Monetary Authority of Singapore, Audited Financials

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General Commerce – growth in line with our increasing presence in SME market

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-2

0

2

4

6

8

10

12

14

-20

-10

0

10

20

30

40

50

60

70

2007 2008 2009 2010 2011 2012

Maybank Singapore Market Share, % (RHS) Industry Growth, % Maybank Singapore Growth , %

Source: Monetary Authority of Singapore, Audited Financials

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Trade Finance – driven by structured trade since its inception 5 years ago as we capitalize on Asia’s booming supply chain

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2007 2008 2009 2010 2011 2012

Other Trade Finance Structured Trade & Commodity Finance

Source: Monetary Authority of Singapore, Audited Financials

CAGR: 52%

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Car Loans - maintain our leadership despite keener competition and a tighter COE supply

-5

0

5

10

15

20

25

30

-5

0

5

10

15

20

25

30

2007 2008 2009 2010 2011 2012*

Maybank Singapore Market Share, % (RHS) Industry Growth, % Maybank Singapore Growth , %

Source: Monetary Authority of Singapore, Audited Financials

*Note: Includes GE Money, which was acquired by Standard Chartered Singapore in late 2011

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Credit Card Base - customers doubled over last 5 years

0

1

2

3

4

0

10

20

30

40

2007 2008 2009 2010 2011 2012

Maybank Singapore Market Share, % (RHS) Industry Growth, % Maybank Singapore Growth , %

Source: Monetary Authority of SingaporeIncludes both main and supplementary cards

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Credit Card Loans – increasing card base plus stronger branding & merchant network facilitate our growing market share

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0

1

2

3

4

-10

0

10

20

30

40

2007 2008 2009 2010 2011 2012

Maybank Singapore Market Share, % (RHS) Industry Growth, % Maybank Singapore Growth , %

Source: Monetary Authority of Singapore, Audited Financials

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Building up scale and capacity - domestic loan driven model funded largely with customer deposits over past decade

0

5,000

10,000

15,000

20,000

25,000

30,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Loans

Deposits

S$ millions

Loan portfolio increased By 5 folds over last decade

Non Performing Loan Ratio, %

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Credit Management - Proactive account management to ensure our asset quality

0.0

0.5

1.0

1.5

2.0

2.5

3.0

2007 2008 2009 2010 2011Major QFBs Maybank Singapore

Source: Audited Financials

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Customer Deposits – integrated deposit collection & customer acquisition strategy

0

1

2

3

4

5

6

7

0

5

10

15

20

25

30

35

2007 2008 2009 2010 2011 2012

Maybank Singapore Market Share, % (RHS) Industry Growth, % Maybank Singapore Growth , %

Deposits from Non-bank Customers, % Change

Source: Monetary Authority of Singapore, Audited Financials

Loan-to-Deposit Ratio, %

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Funding Liquidity - strong deposit growth improved our funding position

0

20

40

60

80

100

2007 2008 2009 2010 2011 2012

Industry Major QFBs Maybank Singapore

Source: Ministry of Trade & Industry, Audited Financials

Cost-to-Income Ratio, %

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Cost Management – streamline processes & optimize resource usage as we expand our business

35

40

45

50

55

2007 2008 2009 2010 2011Major QFBs Maybank Singapore

Source: Audited Financials

0

100

200

300

400

500

600

700

800

2007 2008 2009 2010 2011

Net Interest Income Non-Interest Income

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Revenue Diversification – loan driven model augmented by diversifying into new fee income streams

S$ millions

0

50

100

150

200

250

2006 2011Non-Interest Income

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Non-interest income Growth –driven by core operating business

S$ millions

Non-Operating Income

Other Fee Income

Trade Related

Commission

Wealth Management

Treasury & Investment

Income

Credit Related

Fees

Composition, 2011

CAGR: 23%

• Our Performance Drivers• Service excellence & innovation changes

Agenda

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Service Excellence Culture – benchmark against industry practices to promote continuous service excellence culture

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MBB RHB HSBC SCB OCBC DBS UOB

200920102011

Excellent Service Award Inspire service staff Develop service models Create service champions Recognize efforts Professionalise service

% of Excellent Service Award (EXSA)

Maybank Citibank SCB HSBC DBS OCBC UOB All other Banks

200920102011

Customer Satisfaction Index of Singapore – CSISG

Measure of Customer

Satisfaction Across Banking

Industry Deliver consistent customer satisfaction

Service Innovation – bringing banking convenience and offering more

options to customers

Unique branch concepts and atmospherics that resonate with the needs of customer segments served in the neighbourhood and developments in the location

Interactive Kiosk at Maybank@Clementi

“Garden City” which reflects the rich heritage

that surrounds its presence and yet project a modern and futuristic

outlook in keeping with a booming financial hub.iAppointment service

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Partner with QFB Banks to share ATM network

Joint bill payment services through D-Pay (direct pay) at AXS stations

Service Innovation - Serving customers and communities in urban and heartland areas

“Kaleide culture” that plays out the community buzz and

kampong spirit that are prevalent of thelocal neighbourhood

Contemporary Family Lifestyle

Concept BranchesBoth the brick-and-mortar and thesoft components of our Branchnetwork are transformed. Uniquebranch concepts andatmospherics that resonate withthe needs of customer segmentsserved in the neighbourhood anddevelopments in the location areintroduced.

Investment in Branch Re-engineeringThe Branches have undergone many changes:

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Key Product Innovations over last 3 Years

FIRST to launch a “Privilege Plus Savings” with higher savings rates and free personal accident insurance coverage for customers aged 50 years and above.

FIRST to launch “Pocket Me Giro” with S$5m to reward customers when making GIRO payments

FIRST to offer complimentary travel insurance for online savings accounts

FIRST QFB to launch all-in-one Mastercard debit card with NETS Flashpay

Launch of Maybank Manchester United Platinum Visa Card with United Legends

Re-launch of Maybank Business Platinum MasterCard - the FIRST bank to include an option for companies to feature their company logo and name on a business credit card

ePins is a NEW payment system that operates like Nets. Maybank and Citibank are the first two foreign banks to offer to their customers 1,200 payment points across merchants. With this move, customers of QFBs will now have an added payment channel, with their ATM / debit cards.

FIRST to launch Syariah-compliant savings account for Hajj pilgrims

FIRST to offer Islamic Term Financing to SMEs

Launch two new FIRST-in-market home loan packages - Hybrid Rate & Ceiling Rate Home Loan

Regional Maybank Diamanté Private Client Programme for Selected High Net-Worth Individuals

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• Our Performance Drivers• Human Capital

Agenda

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Asian Banking & Finance Retail Banking Awards 2012: Website of the Year - Singapore & Employer Award of the Year - Gold Award

Arts Supporter Award

Banking & Payments Asia Trailblazer Awards 2012 - Special Commendation for Service Excellence in Customer Experience.

Excellence Award (Corporate Partner) in the People's Association Community Awards 2012 –Maybank Singapore received this award second year running.

• Going forward – Regionalization Initiatives

Agenda

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Strategic Plan – achieving long term sustainable growth

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1. Building Skills for Higher

Competency• Investment in Human Capital to

build up competency as well as commitment

2. Increasing Scope for

Wider Capabilities • Investment in technology & systems

to enhance processes, widen distribution capabilities and penetrate new business areas

3. Expanding scale for

Bigger Capacity • Continual expansion of market

share and customer base in key areas to build on economies of scale

Flexible Business Strategies & Approach in response to market without losing focus on LT goals & support

Value creation

Innovation,

Strategic Resilience

in order to achieve sustainable growth & LT financial goals

Business Excellence Framework

deployment

Group Strategic Objectives – a common regional aspiration

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Our Vision To be a Regional Financial Services Leader

Our Mission Humanising Financial Services Across Asia

Strategic Objectives 1. Undisputed No. 1 Retail Financial Services provider in Malaysia by 2015

2. Leading ASEAN wholesale bank eventually expanding to Middle East, China & India

3. Sustainable Champion for Insurance & Takaful

4. Truly regional organisation, with ~40% of pre-tax profit derived from international operations by 2015

5. Leading Islamic bank in ASEAN

By 2015

S’pore to contribute over 40% of International Profit

Leverage on technology to strengthen Offerings & Deepen Customer penetration

Global Markets Position Singapore as the Derivative Risk Centre for Global Markets

Regional Cash ManagementLeverage on the regional Cash Management platform and build up an underlying suite of Cash Management, Trade Financeand FX products to serve the regional corporate clients

Regionalization of Cards BusinessTo be among Top-5 market share leaders for cards business in the ASEAN region (currently at No.8 ) and contribute at least 8% of group revenue (current contribution at 5%)

Regional Wealth ManagementTo develop RWM capabilities as a strategic step to achieve our aspiration in becoming a regional financial services leader.

Regional Initiatives – build on our organizational capabilities to achieve value creation, innovation and strategic resilience for sustainable growth

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Optimize business synergies within Group with overall client coverage focus

Increase Penetration through Mobile BankingProvide convenience and flexibility to optimize reach to customers with no geographical limit

MBB (Past)

20102005 Future20112006 2008 2012(p)

USD 1 Billion

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Our Triple-One Aspiration

SGD 1 Billion

RM 1 Billion