Analyst Presentation 4Q FY2014 - Maybank

Humanising Financial Services59thAnnual General Meeting11th April 2019Presentation to Shareholdersby Datuk Abdul Farid Alias, Group President & CEO

Maybank continues to grow from strength to strength through the collective efforts of all past and present MaybankersNet Operating Income(RM billion)27.5%18.54Profit Before Tax(RM billion)PPOP(RM billion)29.2%23.639.61CAGR:4.97%FY2013 FY2018Net Profit(RM billion)23.8%22.9%12.428.87CAGR:5.26%FY2013 FY201810.906.55CAGR:4.21%FY2013 FY20188.11CAGR:4.37%FY2013 FY2018Record financial performance in FY2018, with new highs for allfour performance highlights mentioned above.11

Arising from our financial strength, we continueto reward our shareholders with a higher dividendpayoutDividend Payout(RM billion)33.2%4.716.27We offer the BEST shareholder payout amongthe top Malaysia and Singapore Banks.Shareholders are also the top recipient of valuecreated by Maybank.FY2018MaybankMYPeer 1MYPeer 2MYPeer 3% of Staff Compensation& Benefits to Revenue24%25%22%27%% of Dividend Payout toRevenue27%14%25%12%FY2018MaybankSGPeer 1SGPeer 2SGPeer 3% of Staff Compensation& Benefits to Revenue24%22%27%24%% of Dividend Payout toRevenue27%23%19%22%CAGR:5.89%FY2013 FY201822

Operating landscape of 2018 caused some revenue headwindsMacroeconomicevents of 2018Impact to Maybank Group’s Revenue Drivers General Election(GE) in Malaysia Marginal NIM compression of 3bps YoY as a result of liquidity buffer increaseahead of GE in 1H FY2018 Slower corporate lending growth arising from infrastructure project reviewsby new government Uplift in some consumer segments due to consumption tax holiday betweenJune and August Rising rateenvironment Weak investment and trading income on continued capital outflow inemerging markets on rising US rates, with some ASEAN currencies comingunder pressure Ability to selectively re-price in some segments on rate hikes in homemarkets Trade warbetween US andChina Cautiousness in investor sentiment and corporate activities More open economies are susceptible to adverse growth impact from tradebarriersHowever, revenue headwinds were mitigated with continueddiscipline in cost and asset quality management33

Our combined efforts supported our FY2018 performanceNet Fund Based IncomeRM17.1b, 3.1%Net Fee Based IncomeRM6.5b, -1.8%Net Operating IncomeRM23.6b, 1.7%Overhead ExpensesRM11.2b, -1.0%PPOPRM12.4b, 4.2%Net Impairment LossesNet fund based income grew as group gross loansexpanded 4.8%, contributed by the home markets while lower net fee based income was due to a declinein investment and trading income given weak equitymarkets However, we still achieved a new net operating incomerecord and continued with disciplined cost management, yieldinglower overhead expenses.As a result, Pre-Provisioning Operating Profit hit a newhigh of RM12.4 billion RM1.6b, -20.5% while net impairments losses reduced mainly on slowernew impaired loans formation, enabling Net Profit a record net profit of RM8.1 billion and ROE of 11.4%.RM8.1b, 7.9%Earnings per Share (EPS)74.2 sen, 3.0%44The strong performance also contributed to an EPS of74.2 sen.

Continued cost discipline in an operating environment where revenue pressures were felt,resulted in cost-to-income ratio improving to 47.4% and a positiveJAWs of 2.7%. Personnel expenses growth was contained at 5.2%.Cost-to-income Ratio48.9%48.2%47.1%48.6%47.4%Personnel Expenses5.2%6,1285,7655,639FY2015FY20166,450RM million5,019FY201455FY2017 FY2018

Sustained robust liquidity risk indicators through our prudent risk management practices. We prioritised liquiditystrength so that we may serve our clients under any circumstance.Liquidity Risk 86.2%75.4%75.3%76.0%77.3%76.1%Dec 2017Mar 2018Jun 2018Sep 2018Dec 2018

Moderating asset quality trends with a decrease in loan loss allowances, due to lower new impaired loanformation as well as higher recoveries and write-offs.Allowances for losses on loansGross impaired loans (GIL) & GIL Ratio (%)GIL RatioGross Impaired LoansFY20167711,0551,591RM 8%FY2018RM million2,833-30.8%2.28%9,292-23.5% 7,105FY201612,48611,550-13.3%FY20176,163FY2018

Improved ROE and EPS performance through our strong financial performance, despite a higher equity baseto comply with regulatory requirements and to maintain capital strength.ROE (%) & EPS (Sen)Return on %Earnings per Share74.2FY20148872.0FY201574.2FY2018

Highlights of 2018The MSL incorporationsolidifies our commitmentto SingaporeKey Awards in 2018 We were awarded ‘Bankof the Year in Malaysia’in 2018 by The Banker We won two awards inTalentCorp’s LIFE ATWORK Awards 2018 for‘Best MalaysianOrganisation’ and ‘CEOChampion for MalaysianOrganisation’ We ranked among the ‘Top 50ASEAN PLCs’ as part of the ‘2ndASEAN Corporate GovernanceAwards’ organised by MSWGWe cemented our foothold in Singapore by locallyincorporating Maybank Singapore Limited (MSL),which now houses our Singapore Community FinancialServices business effective 5 November 2018.Maybank is a Top 500 Global BrandAmong one of eight ASEAN brandsto make the listWe are the first Malaysian bank to break into theGlobal 500 Brands list by Brand Finance, with a brandvalue of USD4.2 billion.Maybank Risk AcademyLaunched to future-proof ourRisk professionalsSet up to build internal risk expertise in order toequip the organisation with FutureReady, agile andrisk-aware professionals99

Maybank’s digital focus areas“The BestEXPERIENCEOnlineCustomer“i.e.: M2U”Experience”“AdvancedTRUSTAsset ��CORE”“Future-Ready, Speed &Anytime/Anywhere Availability”*Credit, Asset & Risk Management Engine1010

Principle led digital transformationPLACE CUSTOMERPREFERENCES FIRSTDIGITAL TRANSFORMATIONEXTERNALPRINCIPLESMaximise Digital EngagementsLead Digital InnovationsEngage and Foster FintechsRetune Business ModelsRedefine Physical PresenceINTERNALDigital BankOf ChoicePartner Industry DisruptorsDeploy Digital Initiatives Across ASEANUpskill Workforce On Digital NeedsAutomate High Volume Tasks1111

Digital Highlights 2018-2019Digital Achievements in 2018-2019Launched QRPayA cashless paymentsolution using QRcodes, the first by abank in MalaysiaReimaginedMaybank2uA complete change ofuser interface based onfeedback fromcustomers, offering apersonalised andsimplified onlinebanking experienceWe launched the refreshedMaybank2u desktopwebsite, aimed atdelivering an intuitive,personalised and seamlesscustomer experience, withfaster turnaround time.1212Grab PartnershipFormed a strategicpartnership with Grabto drive theacceptance and usageof cashless paymentImplementedE-CLEVALaunched MAEA real-time videoassisted claims caresystem for motor andfire insurance, allowingclaims to be processedvia video calls within15 minutesA lifestyle-themede-wallet, available toanyone above 12 yearsof age without theneed to have a preexisting Maybankaccount

Digital Highlights 2018-2019FutureReady Digital Upskilling ProgrammeWe introduced our FutureReady Digital Upskilling Programme to increase employees’ digitalliteracy in line with the Group’s aspiration to be The Digital Bank of Choice.The Programme’s comprehensive curricular is delivered through the following approaches::FutureReady Knowledge & SkillsUpskilling on six digital skill areas via: E-Learning Classroom programmes Action Learning ProjectsFutureReady MindsetDigital Immersion ProgrammeFutureReady Labs: Leadership Role Modelling Enabling Culture Practice & HabitStrategy, Artificial Intelligence and Machine LearningMaybank’s Group leadership bench (Board of Directors and EXCO members included) investedover 500 man-days in intensive classroom learning sessions, learning new skills such as codingand algorithms programming, and how these skills can be developed in-house.1313

Digital Highlights 2018-2019CARisMa Determine the optimal balance sheet structure for the GroupCentralise all sources of funds across the GroupDetermine the right pricing for the Group’s liabilities and assets to maximise risk-returnsDetermine the optimal portfolio for each component of the balance sheetAllocate capital accordingly based on the optimal portfolioMatch liabilities to assets to close liquidity gapsKey FeaturesLAYER 1Data Architectureand InfrastructureLAYER 2Risk–ReturnsMeasurementand AnalyticsLAYER 3OptimisationAnalytics1414Universal Data LakeOutcomes Group-wide centralised data repository Group-wide standard data dictionary Enhanced data timeliness – improve service level agreementCredit ProposalSimplification New application for accommodation (AA) format for an effective creditdecision Re-engineered end-to-end credit process Comprehensive portfolio allocation strategy Well defined account strategy and pre allocate customer risk appetiteBalance SheetManagement Group Chief RiskOfficer’s LetterDetailed profit and loss attributionImprove ROE and sustainable dividend paymentAllow distribution of the bank’s assets effectivelyA more comprehensive wealth management solution for customers Develop a composite outlook (economic, financial, regulatory andtechnology landscape) Forward looking insights from functional risk teams Enhancement through info/data gap identification Facilitate development of Central Economic Scenario

We strengthened the Executive Committee with internal talents filling the vacancies left by two Maybank veteransRETIREDNEW APPOINTMENTSDATUK LIM HONG TATGroup CEO, CommunityFinancial ServicesRetired on 18 July 2018POLLIE SIMCEO, InternationalRetired on 1 June 20181515DATO’ JOHN CHONG ENG CHUANGroup CEO, CommunityFinancial ServicesAppointed on 1 October 2018MICHAEL FOONG SEONG YEWGroup Chief Strategy Officertook on an expanded role asCEO, Internationalon 1 June 2018

Our continued prioritiesAgility andNimblenessLiquidity andCapital StrengthMaintain sufficient liquidity to meetobligations and capital to absorbpotential losses or systemic shocksFluid and unpredictable operatinglandscape forces us to reactpromptly or risk becoming obsoleteSustainableGrowthLooking Out forthe UnderservedFind ways to make financial solutionsaccessible to themLook at protecting margins as well aspricing credits and liabilities correctlySense of PurposeTreat all our stakeholders fairly, provideadvice based on their needs and capacity,and simplify financial solutions.1616

Our priorities in FY20191Income Growth Expand revenue streams through cross business collaborations Measured balance sheet expansion in line with economic growth of home markets and Group’sconservative risk posture Group ROE guidance of 11.0%2Better Productivity Driving positive JAWs across business segments Managed Group cost growth with CIR 47% Continued emphasis on employee up-skilling for digital economy3Asset Quality Management Disciplined asset quality management and maintain ongoing recovery efforts4Liquidity and Capital Management Maintain stable liquidity risk indicators ahead of NSFR adoption in 2020 Maintain robust capital positions, while rewarding shareholders with strong effective cash dividend payout5Digitalisation Conservative investment spend focused on improving customer experience with rollout of product/services Enhancing data driven analytics1717

Thank you to all shareholders and stakeholdersfor your continuous supportHumanising Financial Services1818