19 Aug 2015 Q1FY2016 Results Investor Presentation · Q1FY2016 Results –Investor Presentation Media reports on alleged individual accounts and transactions “linkedto”AmBank

1Your Bank. Malaysia’s Bank. AmBank.

Q1FY2016 Results – Investor Presentation

19 Aug 2015

Q1FY2016 Results –

Investor Presentation

Datuk Mohamed Azmi Mahmood

Acting Group Managing Director

Your Bank. Malaysia’s Bank. AmBank.™



AGENDA

1. EXECUTIVE SUMMARY & STRATEGIC PRIORITIES

2. FINANCIAL PERFORMANCE

3. ASSET QUALITY

4. FUNDING & CAPITAL

5. OUTLOOK

6. DIVISIONAL PERFORMANCE

7. SUPPLEMENTARY INFORMATION

- AMBANK GROUP

- ECONOMY & INDUSTRY


EXECUTIVE SUMMARY

FINANCIAL PERFORMANCE

DIVISIONAL PERFORMANCE

SUPPLEMENTARY INFORMATION

ASSET QUALITYFUNDING &

CAPITALOUTLOOK & STRATEGY


Excluding one-off divestment gain, underlying PATMI increased by 3.1% YoYunderpinned by lower provisions and expenses. Reported PATMI was lower atRM339.5 million.

A slow QoQ start with lower top line growth and thinning margin, business sentimentwas weak with cautious consumer spending post-GST implementation

Continued emphasis on lending to preferred segments, robust risk management andintensified collection efforts have led to stable asset quality; disciplined costmanagement resulted in well-controlled expense growth

Economic growth is expected to moderate at 4.7% (2014: 6:00%). Overall businesssentiment remains cautious while the export sector continues its resilience, benefitingfrom the weaker Ringgit, and the construction / infrastructure industry supported bypublic investment

We remain focused on delivering FY2016 key performance indicators

Q1FY2016 performance highlights


EXECUTIVE SUMMARY







Vision: As Malaysia’s preferred diversified, internationally connected financial solutions group, we take pride in growing your future with us

Record performances & increasing ROE

Consistent revenue growth

Improved balance sheet & funding mix

Increased dividend payout to 40%

Commenced pursuing niche acquisitions

3 Focus areas:

Strategic Business Transformation

High priority growth initiatives

Organisationand governance structures

Delivered consistent growth & returns

Strengthening customer centricity & connectivity

Expand international connectivity initiatives

In-fill acquisitions & new strategic tie-up

Grow retail assets

Lead in investment banking business

Leverage fixed income trading

1. Deliver on focused organic growth

2. Leverage strategic partnerships & deliver on acquisitions

3. Continue to optimise efficiency

4. Build sustainability

Pre ANZ FY2008 – 10 FY2011 – 12 FY2013 – 14 FY2015 – 17

Scale & Presence

Reposition, Build New Growth

OptionsImprove Returns

Aggressively Invest, Optimise &

Leverage Connectivity

Focused Growth

Leverage Investment

Optimise Enablers

Our FY2015 – 2017 strategic agenda remain unchanged


EXECUTIVE SUMMARY







Focused growthLeverage

investmentsOptimise efficiency Build sustainability

FY2016 Strategic Initiatives

Retail Banking

Build business momentum and strengthen retail bank franchise

Focus on small business, young professionals and emerging affluent

Execute digital roadmap and simplification agenda

Develop single point of contact for customers, build people capability and embedservice culture

Wholesale Banking

Prioritise growth in targeted segments, focus on segments with higher flow businesses(cash, FX and trade) and assets under management

Simplifying processes – improving speed to customers in credit review processes anddocumentation execution for disbursements / deposits taking.

Diversifying concentration risk – de-risking of loans and deposits in Top 20 customergroups

Strengthen and broaden distribution platforms/channels

General Insurance

Prepare for de-tariffication as an opportunity to develop a competitive advantage inpricing capability in penetrating new product lines and segments

Continue to strengthen the No.1 position in motor insurance

Drive growth in selected Personal Lines and SME Commercial Lines products


EXECUTIVE SUMMARY







Media reports on alleged individual accounts and transactions “linked to” AmBankgroup started on 2 July 2015

On 14 July 2015, a teleconference with analysts and fund managers was held tohighlight that AmBank Group:

is a trustworthy & professionally run organisation

has a strong culture of integrity

A-political

Good team of management and employees

Legacy of strong governance and reputation

On 16 July 2015, AmBank Group issued a press statement and Bursa announcementto refute a defamatory hoax perpetrated by a non-governmental organisation

Recent media reports on alleged “high profile” accounts


EXECUTIVE SUMMARY







Aug 2015

Q1FY2016 Results –

Investor Presentation

Mandy Simpson

Chief Financial Officer

Your Bank. Malaysia’s Bank. AmBank.™


EXECUTIVE SUMMARY







Key themes of Q1FY2016 results

1. Net profit was impacted by net interest margin compression, caused by lumpycorporate repayments and portfolio rebalancing, whilst non-interest income growthreflected subdued capital market activities

2. Expenses well contained through emphasis on cost discipline and proactivemanagement of personnel costs

3. Mortgage primary driver of asset growth, gross loans contracted 2.4% QoQ due torepayment of large corporate loans and portfolio rebalancing

4. Good asset quality with credit cost at 1 bps, notwithstanding a well-secured impairedcorporate loan, GIL ratio would have been 1.42%* and loan loss coverage at 130.1%*(*Reported GIL ratio: 1.80%; Reported LLC: 103.2%)

5. Sound liquidity management and capital ratios


EXECUTIVE SUMMARY







339.5 mil

Islamic PATMI Conventional PATMI Positive growth in Q1FY16 Contraction in Q1FY16

8.7 >100% 9.3% 5.7 % 3.1% 10.4% 11.6% 0.7% 2.3%

536.9 mil

11.4% 9.4%

* One-offs in Q1FY15 included divestment gain from the partial disposal of life insurance business and related expenses PATMI: profit after tax and non controlling interests

85%

9%

91%

Lower income reflecting NIM compression and subdued capital market

(RM’ mil) Reported

PATMIQ1FY15

One-offs*Underlying

PATMIQ1FY15

Net Interest Income

Non-Interest Income

Total income

Expenses PBPProvisions/Allowances

PBTTax & Zakat

PAT MIPATMIQ1FY16

Q1FY16 - 536.9 616.4 347.2 963.6 487.1 476.5 (5.9) 482.4 113.7 368.7 29.2

Q1FY15 207.6 329.3 695.8 380.2 1,076.0 537.3 538.7 52.9 485.8 125.5 360.2 30.9

15%

38.7%

85%

15%

9%

Growth


EXECUTIVE SUMMARY







24.6 24.1 23.3 22.7 22.2

61.0 60.6 62.4 63.5 61.9

1QFY15 2QFY15 3QFY15 4QFY15 1QFY16

(RM’bil)

Auto Fin Loans excluding AF

C. Deposits QoQ growth: -2.7%CASA QoQ growth: 0.2%

QoQ growth: -2.4%YoY growth: -1.8%

18.8 17.1 18.5 18.7 18.8

95.194.8

99.8 102.8 99.8

22%20% 21% 20% 21%


Customer deposits (RM'bil) CASA(RM'bil)

Reflects portfolio rebalancing & re-alignment of customer segment focus1. Customer deposits include stable funding sources

Slow QoQ performance amid weak business sentiment and selective lending

PATMI & ROE CTI

Customer Deposits1

& CASA Net Lending

42.8% 44.3%49.5% 47.4% 50.6%


PATMI QoQ growth: -65.4%ROE QoQ growth: 5.8% QoQ change: 3.1%

536.9

445.8 416.6

519.2

339.5

16.0%

12.7%11.8%

15.1%

9.3%


PATMI (RM'mil) ROE

85.6 84.7 86.285.7 84.1


EXECUTIVE SUMMARY







44.7

49.654.0

59.363.8

17.9

11.3

FY11 FY12 FY13 FY14 FY15 Q1FY15 Q1FY16

- - - - -329

-

1,343 1,484

1,621 1,782

1,919

537

340

13.6% 13.8% 13.9%14.1% 13.8%

16.0%

9.3%


PATMI Reported (RM'mil)

PATMI Underlying (RM'mil)

ROE (%)

1.39%1.39% 1.37%

1.45%

1.60%

1.78%

1.13%


CAGR FY11-15: 0.05%YoY growth: -0.65%

CAGR FY10-15: 9.3%YoY growth: -36.8%

ROECAGR FY11-15: 0.1%YoY growth: -6.7%

PATMICAGR FY11-15: 9.3%YoY growth: -36.8%

1. FY2013 has been restated to reflect adoption of new MFRS

RM (sen)

(%)

PATMI & ROE ROA

EPS (basic)

39.9% 41.6%

48.1%45.8% 45.7%

42.8%

50.6%

FY11 FY12 FY13 FY14 FY15 Q1FY15 Q1Y16

CTI YoY change: 7.8%

(%)

CTI

Mixed underlying performance YoY

Higher due to lower income growth


EXECUTIVE SUMMARY







Q1FY2016 (Reported)vs. Q1FY2015

(Reported)Yoy

vs. Q1FY2015(Underlying1)

Yoy

vs. Q4FY2015(Underlying1)

qoq growth

Income (34.3%) (10.4%) (8.2%)

Expenses (22.3%) (9.3%) (8.6%)

Provisions >100% >100% (94.0%)

PATMI (36.8%) 3.1% (25.6%)

NIM (0.33%) (0.33%) (0.21%)

Non-interest income composition (%)

36.0% 36.0% 36.0%

(1) FY2015 Underlying – adjusted by divestment gain and related expenses from disposal of AmLife and AmFamily Takaful

Better asset quality and disciplined cost management driving underlying PATMI growth


EXECUTIVE SUMMARY







1QFY2015 2QFY2015 3QFY2015 4QFY2015 Q1FY2016

NIM 2.45% 2.54% 2.38% 2.33% 2.12%

Note:1 NIM includes Net Financing Income from Islamic Banking business2 FY10-FY14 based on internal data computation

3 FY2013 has been restated to reflect adoption of new MFRS

NIM and COF (YOY)

MFR

S 1

0

2.68%

2.92%

3.13% 3.10% 3.10% 3.09%2.98% 2.94%

2.75%2.68% 2.72% 2.69%

2.25%

2.75%

3.00% 3.00%3.00% 3.00%

1.00% 1.00%

4.00% 4.00% 4.00% 4.00%

FY10 FY11 FY12 FY13 1 Apr 2013 FY14Cost of funds NIM OPR SRR

COF

NIM

SRR

OPR

YTD NIM (bps) drivers

Higher NIM compression driven by lumpy loan repayment and portfolio re-balancing

FY10 FY11 FY12 FY13FY13

[Restated]3 FY14 FY15 Q4FY15 Q1FY16

NIM Driver Impact (bps)

Portfolio rebalancing -3

Asset re-pricing -2

Deposits -2

Underlying movement -7

One-offs -14

NIM movement (Q4FY15 vs Q1FY16) -21

Breakdown of NIM Driver:

QoQ NIM compressed by 21 bps driven by:

Portfolio rebalancing -

Higher yield auto loans tapered off

Increased contribution from wholesale loans

Asset re-pricing – Fixed income trading strategy shifted towards shorter end of yield curve

Increase in deposits rates

One-off items include provision for equalization reserve (PER) and effective interest rate (EIR) adjustments


EXECUTIVE SUMMARY







Banking CTI AmGeneral COR*

Q1FY16 42.3% 89.3%

Q1FY15 44.8% 93.3%

Expenses remain contained through continued emphasis on cost discipline

42.8% 50.6%CTI

YoY Growth

RM’mil

Expenses growth drivers

* Combined operating ratio for AmG entity level

22.3% reported decrease

9.3% underlying decrease

Q1FY15 reported

Re-structuring

Q1FY15 underlying

Efficiencies &

headcount savings

Equity accounting

impact of Life businesses

IB restructuring efficiencies

Q1FY16 pre-investment

Regulatory&

compliance

Infra-structure

Q1FY16 reported


EXECUTIVE SUMMARY







Key financials:

Deposits(RM’bil)

GrossLoans (RM’bil)

PAT(RM’mil)

17.7 18.9

25.1 22.6

5.3 4.4

Q1FY15 Q1FY16

Mortgage Auto Fin Others

48.1 45.8

Total loans 4.6%Exclude AF 1.3%

10.7 10.7

40.0 42.1

Q1FY15 Q1FY16

CASA Cust Deposits

Cus Dep 5.4%CASA 0.3%

94% 97%

6% 3%

Q1FY15 Q1FY16

Total Retail 3.7%Exclude AF 4.3%

123 119

Conventional PATIslamic PAT

Retail Banking: Focusing on segment play and main-bank deposit accounts

1. SBB: Small Business Banking2. AF: Auto Finance

Performance summary:

Deposits growth driven by solutions targeted at SBB1 and selected customer segments

Loan underwriting focused on expanding variable rate loans and better risk grade customers

Profit reflects margin compression and de-risking of AF2 portfolio, while expenses and provisions well-contained

Key focus & planned initiatives:

Deposits – Targeted segment play through SBB, TRUE and AmBank@Work

Mortgage – Partnership with top grade developers and expand/build strength in secondary market

Auto & Cards – System upgrade, programs to increase card spending and strategic merchant partnerships

Continued collection efforts to maintain asset quality and collection system upgrade

Enablers (Digital & Service) – re-platform internet & mobile banking, end-to-end service measures


EXECUTIVE SUMMARY







GrossLoans & Average AUM1

(RM’bil)

PAT(RM’mil)

Marketshare

1. Average AUM represents AmInvest’s funds under management, Private Banking, Am Private Equity & AmARA REITs2. Jan 2015 – June 20153. Represents AmInvest’s unit trust funds asset under management as at 31 Mar 2015

39.7 39.9

45.6 47.3

Q1FY15 Q1FY16

Gross loans AUM

AUM 3.9%Loans 0.4%

Market Share (%)

Rank

DCM2 18.1% 3

M’sian Ringgit Islamic Bonds2 14.9% 4

FUM3 11.4% 3

Loans growth was flat mainly due to weakbusiness sentiment and large repayments

Lower PAT impacted by:

• NIM compression attributable to flat loansgrowth

• Decline in capital market activities and lowertrading income

• Partially offset by cost savings from rightsizing program

Wholesale Banking: To prioritise growth on higher flow business

Key financials: Performance summary:

Conventional PATIslamic PAT

12.6%

216 189

72% 79%

28% 21%

Q1FY15 Q1FY16

Increase customer SOW (share of wallet) andattract new clients with customized solutions

Prioritise growth on higher flow business, e.g.cash management, FX, trade finance and AUM

Focus on term-loan backed by Credit GuaranteeCorporation

Key segments:

SME / Mid Corporate – Manufacturing, servicesand construction/infrastructure

Establish and expand presence in underweightgeographical areas


Wholesale Banking: To prioritise growth on higher flow business


EXECUTIVE SUMMARY







Combinedratio* (%)

Net earned premium(RM’mil)

PAT(RM’mil)

Net earned premium grew:

Motor insurance premium sustaineddespite GST impact and de-risking ofauto finance portfolio

Fire insurance products recorded 9.3% ofgross premium growth

Lower combined ratio reflects efficiency whilstclaim expenses decreased YoY throughemphasis on claims management process, e.g.Kurnia / AmAssurance Express

374 380

Q1FY15 Q1FY16

93.3% 89.3%

Q1FY15 Q1FY16

4.0%

1.4%

63 59

Q1FY15 Q1FY16

5.9%

General Insurance: Premium sustained despite GST impact, steering towards de-tariffication readiness

Key financials: Performance summary:

* Combined ratio refers to AmG entity ratios


De-tariffication readiness

Phased launch of 5 new/revised SME andPersonal Line products to be sold in line withcross sales strategy

Continue to strengthen our No.1 position inmotor insurance through building valueproposition for franchise partner

Leverage on digital platform to support agentsand to deliver unique customer experience,including new agent portal and social mediareboot


EXECUTIVE SUMMARY







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%

2.45%1.98% 1.86% 1.79% 1.80%

0.50% 0.21% 0.08% -0.04% 0.01%

1.42% 1.42%

95.6%102.2% 104.5%

98.8% 97.5%

114.6%

129.3% 127.4%

104.9% 103.2%

131.5% 130.1%

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%

2.45%1.98% 1.86% 1.79% 1.80%

0.50% 0.21% 0.08% -0.04% 0.01%

1.42% 1.42%

95.6%102.2% 104.5%

98.8% 97.5%

114.6%

129.3% 127.4%

104.9% 103.2%

131.5%130.1%

Net Provisions Charge Net NPL Ratio Gross NPL Ratio GIL Ratio Loan Loss Charge Industry (LLCoverage) AmBank Gp (LLCoverage)

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%

2.45%1.98% 1.86% 1.79% 1.80%

0.50% 0.21% 0.08% -0.04% 0.01%

1.42% 1.42%

95.6%102.2% 104.5%

98.8% 97.5%

114.6%

129.3% 127.4%

104.9% 103.2%

131.5%130.1%

Net Provisions Charge Net NPL Ratio Gross NPL Ratio GIL Ratio Loan Loss Charge Industry (LLCoverage) AmBank Gp (LLCoverage)

81.1

10.7

56.0

17.0

(2.7)

2.50%2.43%

2.17%

2.01%1.95%

1.09%0.98%

1.53% 1.55% 1.63%

0.73% 0.77% 0.81%

1.87%1.79%

1.88%1.79% 1.80%

1.51%1.42% 1.42%

FY2007 FY2008 FY2009 FY2010 1/4/10 FY2011 FY2012 FY2013 FY2014 FY2015 Q1FY16

QoQ Gross Impaired Loans ratioStable asset quality


Prudent lending, robust risk and collection management

Group’s loan loss charge of 1 bps in 1QFY16, reflects our focus on preferred segments

Excluding a large well-secured impaired corporate loan, GIL ratio for the Group and WB would improve to 1.42% and 0.81% respectively, while Group’s loan loss coverage would rise to 130.2%

RB’s GIL continued to improve, supported by intense monitoring of portfolios and heightened collection efforts

RM’mil

Q1FY15 Allowance for impairment

Individual allowance

Collective allowance

Impaired loans – recovered

Q1FY16 Allowance for impairment

Allowance for impairment on loans & financing (P&L)

RB: Retail Banking, WB: Wholesale Banking# Exclude a large well-secured corporate customer

#

#

#

##

#

2.50%2.43%

2.17%

2.01% 1.95%

1.09%0.98%

1.53% 1.55% 1.63%

0.73% 0.77% 0.81%

1.87%1.79%

1.88%1.79% 1.80%

1.51%1.42% 1.42%

RB WB AmBank Group

MFR

S 1

39

GP

3

AmBank Group (LLCoverage)

Industry (LLCoverage)

#

#

#

#


EXECUTIVE SUMMARY







87.8 bil

1.7% 4.6% 4.1% 19.1% 7.9% 2.4%

85.6 bil

2.8%

No

n-re

tail

Reta

il

2.3%

Non-RetailRetail Positive growth in Q1FY16 Contraction in Q1FY16

(RM’ bil)Gross Loan

Q1FY15

Auto Financing

Mortgage Cards Co-op AFSB Wholesale OthersGross Loan

Q1FY16

Q1FY16 22.6 18.9 1.7 1.3 1.4 39.9 (0.0)

Q4FY15 23.1 18.6 1.8 1.3 1.5 41.6 (0.0)

% of Composition

Q1FY16 26.4% 22.0% 2.0% 1.5% 1.6% 46.5% 0.0%

Q4FY15 28.7% 20.1% 2.3% 1.6% 2.0% 45.3% 0.0%

YTD Gross Loan / Financingmovement

54%

46%

53%

47%

Loan movement reflects lumpy corporate repayment and auto finance repositioning

6.7% 16.5% 0.4% 75.5% 23.3% 9.1% 10.1% 2.2%YoY Growth

YTD Growth


EXECUTIVE SUMMARY







35.0 11.9 101.3 10.7 58.2 102.1

34.3 95.3 89.0

39.6

791.2

19.2

1,387.7

Jun-15

2.5% 0.9% 7.3% 0.8% 4.2% 7.4% 2.5% 6.9% 6.4% 2.9% 57.0% 1.4%

4.2 3.7 8.3 0.63.3 4.4

2.5 2.9 8.5 1.7

45.1

0.4

85.7

Jun-15

4.2 3.7 8.3 0.63.3 4.4

2.5 2.9 8.5 1.7

45.1

0.4

85.7

Jun-15

4.9% 4.3% 9.7% 0.7% 3.9% 5.1% 3.0% 3.4% 9.9% 1.9% 52.7% 0.5%LoansComposition

Source : BNM, financial statementYour Bank. Malaysia’s Bank. AmBank.

AmBank Group

Industry

AgricultureMining & Quarrying

ManufacturingElectricity,

Gas & WaterConstruction

Wholesale, Retail,

Restaurant

Transport, Storage &

Com

Finance, Insurance,

& Biz. Real Estate

Education & Health

Household Others Total Loans

YoYGrowth

AgricultureMining & Quarrying

ManufacturingElectricity,

Gas & WaterConstruction

Wholesale, Retail,

Restaurant

Transport, Storage &

Com

Finance, Insurance,

& Biz. Real Estate

Education & Health

Household Others Total Loans

Target growth in preferred sectors

9.9% 23.1% 0.2% 54.8% 23.7% 25.2% 10.7% 25.3% 7.1% 44.6% 3.6% 4.2% 2.2%

YoYGrowth

LoansComposition 2.5% 0.9% 7.3% 0.8% 4.2% 7.4% 2.5% 6.9% 6.4% 2.9% 57.0% 1.4%

10.0% 42.3% 3.2% 20.5% 11.3% 8.2% 10.5% 15.1% 16.7% 2.2% 8.7% 8.9% 9.1%

Loans by purpose Jun’15YoY

growthComposition

Purchase of transport vehicles

23.2 -11.6% 27.1%

Working capital 22.8 +11.3% 26.6%

Purchase of resiproperty

16.3 +8.9% 19.0%

Purchase of non-resiproperty

7.9 -10.3% 9.2%

Other purpose 5.0 -10.1% 5.8%

Purchase of securities

3.0 -16.0% 3.5%

Construction 3.1 -9.4% 3.7%

Personal use 1.7 -0.8% 1.9%

Credit card 1.5 -24.7% 1.7%

Purchase of fixed assets

1.2 +32.7% 1.4%

Consumer durables 0.0 - 0.0%

85.7 -2.2% 100.0%

Loans by purpose Jun’15YoY

growthComposition

Purchase of transport vehicles

168.2 +2.1% 12.1%

Working capital 328.4 +11.4% 23.7%

Purchase of resiproperty

414.6 +12.8% 29.9%

Purchase of non-resiproperty

189.9 +15.5% 13.7%

Other purpose 64.6 -4.6% 4.7%

Purchase of securities

75.6 +2.3% 5.4%

Construction 39.8 +11.2% 2.9%

Personal use 61.3 +5.2% 4.4%

Credit card 34.7 +0.7% 2.5%

Purchase of fixed assets

10.4 +0.0% 0.7%

Consumer durables 0.1 -62.9% 0.0%

1,387.7 +9.1% 100.0%

Loans by Sector

Loans by Sector

4.2 3.7 8.3 0.63.3 4.4

2.5 2.9 8.5 1.7

45.1

0.4

85.7

Jun-15

RM’ bil

RM’ bil


EXECUTIVE SUMMARY







23% 26% 27%

55%58% 60%

2%1% 1%21%

15% 12%

FY14 FY15 FY16

Most preferred Preferred Least preferred Gen 1 scorecards

Risk Grade

% of Balance

Monthly decline in auto finance slowing down

Continual reduction in auto loan extended to vulnerable income group

Initiatives to achieve disbursement target progressively throughout FY16:

Campaigns with domestic car dealers

Targeted value proposition for selected car models / dealers

Customer retention programs

Declining trend in monthly auto finance balances

Auto Finance: Targeting preferred customer segments

Household Income Group (% of loans outstanding)Risk Grade (% of loans outstanding)

Note: Vulnerable income group is defined as household income ≤RM3,000

1. Gen 1 refers to loans accepted prior to July 2009 under the Generation 1 scorecard

67% 70% 71%

33% 30% 29%

FY14 FY15 FY16

Other Income brackets Vulnerable Income bracket

Combine Income group

% of Balance

(350)

(300)

(250)

(200)

(150)

(100)

(50)

0

21.0

21.5

22.0

22.5

23.0

23.5

24.0

24.5

25.0

25.5RM'000RM'mil

Balance Net monthly changes

RM’ bil


EXECUTIVE SUMMARY







70.7 81.5 84.6

93.1 98.3 102.8 100.1

91.7% 87.3% 89.5% 88.7% 88.7%83.8% 84.0%

FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 Q1FY2016

Adjusted customer deposits Adj LDR


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 similar2. Industry average calculated based on eight local peer banks as at 31 Mar 2015

Stable deposit funding profile

Customer deposits driven by individuals & term funding

Stable LDR ratio

Funding composition

CAGR FY10-15: 7.8%

FY07 FY10 FY13 FY15 Q1FY16Industry

Ave2

Equity & debtcapital

10% 15% 14% 15% 16% 14%

Customer deposits

60% 77% 75% 74% 73% 73%

Term funding & loans with recourse >1year

4% 2% 7% 8% 8%

6%

Term funding & loans with recourse <1year

1% 1% 1% 1% 1%

Deposits from banks & FIs

25% 5% 3% 2% 2% 7%

As at 30 June 2015, our indicative LCR for AmBank, AmBank Islamic and AmInvestmentare above 100%

Based on the policy issued by BNM on 31 March 2015, the timeline and the minimum LCR required to be met are as follow:

o 1 June 2015 – 60%

o 1 Jan 2016 – 70%

o 1 Jan 2017 – 80%

o 1 Jan 2018 – 90%

o 1 Jan 2019 – 100%

Adj CustDep

Q1FY15Individuals

Biz Enterprise

& GovtOthers

Customer deposits

Term funding

Adj CustDep

Q1FY16

Q1FY16 35.6 51.0 3.3 89.9 9.9 99.8

Q1FY15 34.2 49.9 2.8 86.9 8.2 95.1

YoY growth

RM’ bil 4.2% 2.1% 14.7% 3.3% 21.5% 4.9%

*Others refer to charitable institutions, societies, non-profitable organisations


EXECUTIVE SUMMARY







9.3% 9.7% 10.5% 11.1%9.8% 10.4%

11.0% 11.2%11.8% 12.4%14.0%

14.7% 14.8% 15.5% 15.8%16.4%

1. Double leverage ratio computed based on AMMB Holdings company level2. Balance sheet leverage ratio: total equity net of deferred tax & intangible assets over total assets net of deferred tax assets & intangible assets 3. Total leverage ratio: total equity net of deferred tax & intangible assets over total assets net of deferred tax assets & intangible assets & off balance sheet4. Based on discussion paper issued by BNM5. Proforma capital ratios include Q1FY16 unappropriated profits of AmBank (M) Bhd, AmIslamic & AmInvestment6. Ratios have been revised due to exclusion of certain non-FHC Basel III compliant Tier 1 & Tier 2 instruments and clarifications from BNM

Basel II

FY2011 FY2012 FY2013 FY2014 FY2015 Q1FY165

Proforma

CET 1Tier 1 RWCAR / Total Capital Ratio

Capital adequacy ratio: Aggregated Banking Entities

Sound capital level in line with Group’s operations and risk profile

Capital adequacy ratio (CAR): Legal Entities

Q1FY15 Q1FY16

CET 1 Tier 1Total

capitalCET 1 Tier 1

Total capital

AmBank 9.6% 11.6% 15.2% 10.3% 12.2% 15.8%

AmBank Islamic

8.9% 8.9% 14.8% 9.3% 9.3% 14.5%

Am-Investment

18.2% 18.2% 18.2% 19.8% 19.8% 19.8%

AmGeneral >200% >200%

AmMetLife >200% >200%

--------------------- After proposed dividend ---------------------

Basel III

Internal target capital levels for FY2016 –

o CET 1: 9.0% ± 1.0%; Tier 1: 10.5% ± 1.0%; Total Capital: 15.0% ± 1.0%

Double leverage ratio1: 1.13x, Balance Sheet leverage ratio2: 9.7%, Total leverage ratio3: 7.7%

Basel III Financial Holding Company (FHC) indicative ratios (grandfathering) as at 30 June 20156 (no requirements until FY20204) – CET 1: 9.1%; Tier 1: 10.2%; Total Capital: 14.0%


EXECUTIVE SUMMARY







2014 2015F 2016F

RGDP y/y% 6.0 4.7 5.0-5.3

Inflation y/y% 3.1 2.0-2.3 2.5

OPR% 3.25 3.25 3.50

Unemployment % 3.0 3.0 – 3.2 2.7

Fiscal Balance % GDP

-3.5 -3.2 -2.9

CABOP% GDP 4.6 2.5 3.0

Malaysia Banking

Outlook

GDP growth anticipated to slow from 6.0% in 2014to 4.7% in 2015, reflecting

o Soft global crude oil price, lower governmentspending and dampened exports contribution

o Moderate domestic consumption, weighed downby high household debt levels amidst rising costof living

Inflation expected to stay around 2.0% - 2.3%reflecting GST impact and weak Ringgit, partiallyoffset by lower global commodity prices and softerdemand

US dollar rise and interest gap will weigh on Ringgit

Authorities may adopt prudent and pragmaticpolicies together reigning in the fiscal deficit andpublic/household debt

Monetary policy expected to remain prudent tosupport slower economic growth, financialimbalances and spillover gap from US dollar risetogether with potential rate hike by the Fed

Loans growth to moderate in tandem with slowerGDP expansion

Margins remain a challenge from the persistence ofintense price-based competition for deposits

Asset quality may come under pressure from risinginflation, subsidy reductions and GST impact

OPR is expected to remain steady at 3.25% in2015.

98.2

15.1%

2.4%

Oct-

13

Nov-1

3

Dec-1

3

Jan-1

4

Feb-1

4

Mar-

14

Apr-

14

May-1

4

Jun-1

4

Jul-

14

Aug-1

4

Sep-1

4

Oct-

14

Nov-1

4

Dec-1

4

Jan-1

5

Feb-1

5

Mar-

15

Apr-

15

May-1

5

Jun-1

5

RM'bil

Loans disbursed Loans approved Loans Applied


EXECUTIVE SUMMARY







FY2015 Q1FY2016 FY2016

PATMI

(RM’mil)

1,918.6

(Reported: 7.6% yoy;

Underlying: 2.9% yoy)

339.5

(Reported: 36.8% yoy

Underlying: 3.1% yoy)

3 – 5% (Underlying)

ROE (%) 13.8% 9.3% 12 – 12.5%

CTI (%)

45.7%

44.6%

(Banking Group)

50.6%

42.3%

(Banking Group)

≤46%

Gross impaired loans (%)

1.8% 1.8% ≤2.0%

Dividend:

Payout (%)43% payout NA

40 - 50%

Payout

Key performance indicators

Underlying FY2016 estimates:

NIM compression: 15 – 20bps

Loans growth: 4 – 5%

CASA composition ≥21%

Non-interest income composition ~40%

Target CET 1 of 9.1% (±1%), Tier 1 of 10.6% (±1%), total capital of 15.0% (±1%)


EXECUTIVE SUMMARY









EXECUTIVE SUMMARY







Restore customer service rhythm, build sustainable growth Aspirations

• Build business momentum and improve customer service

• Continue to improve loan quality

• Implement digital platform and build a digital eco system

Outlook

• PAT reflects portfolio re-balancing towards underwriting better quality assets and margin compression

• Expenses well-contained despite rising costs and system enhancements to meet regulatory requirements

• Loan loss allowances improving, in line with improved asset quality and collection efforts

• Gross loans (excluding the Auto Finance segment) grew 1.3%, of which Mortgage segment grew 6.7% yoy

Focus on sustainable growth, achieve sales & service excellence

Retail Banking

PAT

Q1FY16 PATQ1FY15 PAT Positive growth in Q1FY16 Contraction in Q1FY16

Q1FY16(composition to Group)Growth

Excluding AF -1.3% -6.3% 6.3% >100% 4.2% 4.2% 4.3%

Growth -6.6% -5.3% -8.0% -20.6% -3.7% -3.8% -3.7%

Q1FY16 417.7 216.0 201.7 44.2 157.6 39.0 118.5

Q1FY15 447.2 228.0 219.2 55.6 163.6 40.6 123.0

PBT TaxPAT

Q1FY16

PAT

Q1FY15

Total

IncomeExpenses PBP Allowances


EXECUTIVE SUMMARY







Coverage: Recognition by our customers as their preferred top tier Malaysian bank Products: To be the preferred provider of innovative, quality and differentiated products and services with market leadership position in chosen areas

Aspirations

• Accelerate growth on segments with higher flow business, e.g. cash, foreign exchange and trade finance as well as asset under management

• Loans growth expected to pick up on a back of good inventory and lower repayment, focusing on commercial and mid-corporate segments

Outlook

PAT

• Yoy performance was affected by NIM compression, subdued capital market activities and volatile rate movement; partially mitigated by higher foreign exchange sales income and re-alignment of bonus expenses

• Uncertain business outlook coupled with large repayments have decelerated corporate loans growth yoy

• Loan loss allowances declined yoy while impaired loans ratio and allowance coverage trended higher due to a well-secured impaired corporate loan

Business sentiment affected PAT

Q1FY16 PAT(composition to Group)

Wholesale Banking

Q1FY16 Income Breakdown


Q1FY16 vs.

Q1FY15


EXECUTIVE SUMMARY







To be the most trusted insurer in MalaysiaAspirations

• Continue to aim for consistent growth on the underlying business performance. Focus will be top line strategic growth initiatives and preparation for the upcoming de-tariffication

Outlook

PAT

• Net earned premium improved marginally yoy despite GST impact and de-risking of auto loans portfolio affecting Bancassurance sales

• PAT decreased yoy due to absence of one-off investment gain, partially offset by lower claims expense

Sustainable premium growth

General Insurance

Ratios above reflects insurance and operations business only


Growth 1.4% -2.7% 13.9% -1.8% 59.1% -29.0% >100% -13.1% -5.9%

Q1FY16 379.5 273.9 105.6 67.5 38.2 39.7 0.7 18.3 58.9

Q1FY15 374.2 281.5 92.7 68.7 24.0 55.9 (3.7) 21.1 62.6

Provision TaxPAT

Q1FY16

Net UW

Profit

Investment

Income

PAT

Q1FY15

Net

Earned

Premium

Claims &

CommUW Profit

Mgmnt

Expenses


RM'mil Q1FY15 Q1FY16

Claim ratio 64.6% 63.1% -▼ -0.2%

Expenses ratio 18.1% 17.1% -▼ -1.0%

Combined ratio 93.3% 89.3% -▼ -4.0%

Q1FY16

VS.

Q1FY15

G

GGG

GGGG

G

G

GGG

GG

GGG

GGG

GG


EXECUTIVE SUMMARY







To be known as the Islamic Bank which Prospers with SocietyAspirations

• Grow CASA and liability products

• Improve portfolio mix and increase fee and commission income

• Strengthen compliance

Outlook

PATZ

• Strong double-digit financing and customer deposits growth, both driven by Wholesale Banking

• Despite encouraging financing growth, income was flat due to continued margin compression and realignment of Retail Banking’s financing portfolio

• Impaired financing ratio and allowance coverage impacted by a large well secured corporate impairment

Strong financing growth


Islamic Banking

PATZ: profit after tax and zakat


Growth 0.6% 12.0% -10.5% -29.9% 4.8% -4.0% 7.3%

Q1FY16 223.2 122.5 100.6 34.8 65.8 13.7 52.1

Q1FY15 221.8 109.4 112.5 49.6 62.9 14.3 48.5

PBT TaxPAT

Q1FY16

PAT

Q1FY15

Total

IncomeExpenses PBP Allowances

Q1FY16 Gross Financing(composition to Group)

RM'mil Q1FY15 Q1FY16

Gross Financing 24,760.1 27,327.6 ▲ +10.4%

Gross Impaired Financing 2.30% 343.7 628.5 ▲ +82.9%

Customer Deposits 25,155.6 28,528.8 ▲ +13.4%

CASA Deposits 6,108.6 5,854.3 -▼ -4.2%

ROA 0.14% 0.13% -▼ -0.01%

CTI 49.3% 54.9% ▲ +5.6%

Allowance Coverage 161.2% 83.5% -▼ -77.7%

FY16

vs FY15

Q1FY16 vs.

Q1FY15


EXECUTIVE SUMMARY







• PAT in Q1FY2015 included one-off divestment gain of AmLife and AmFamily businesses and related acquisition costs

• MI represents non-controlling interests within the Group


85.9%Growth >100.0% 50.7% 79.4% >100.0% 73.2% 96.8%

PAT

>100.0%

PATQ1FY15

TotalIncome

Expenses PBP Allowances PBT Tax PAT MIPATMIQ1FY16

Q1FY16 (RM’mil)

60.9 80.8 (19.9) 18.0 (1.9) 6.8 4.9 29.2 (24.2)

Q1FY15(RM’mil)

431.2 163.9 267.3 87.7 179.5 25.4 154.2 30.9 123.2

5.7%

Group Operating Segments



EXECUTIVE SUMMARY








AMBANK GROUP


EXECUTIVE SUMMARY







Q1FY15 Fees on loans AUM IB business Other fee inc Total Fee

income

Sales Trading Other trading

inc

Total Trading

& Investment

General Life & Takaful Total

Insurance

Other Q1FY16

H1FY14 Fees on loans AUM IB businessOther fee incTotal Fee income Sales TradingOther trading incTotal Trading & InvestmentGeneral Life & TakafulTotal Insurance Other H1FY15

H1FY14 Fees on loans AUM IB businessOther fee incTotal Fee income Sales TradingOther trading incTotal Trading & InvestmentGeneral Life & TakafulTotal Insurance Other H1FY15

* IB business includes brokerage fees, underwriting fees and corporate advisory & guarantees

As % of total income 53% 36%

71.6% 24.0%Growth 28.0% >100.0% 91.4% 7.4% 86.7% 35.3% 54.9% 15.9%

Q1FY16 non interest income Positive growth in Q1FY16 Contraction in Q1FY16Q1FY15 non interest income

(RM’mil)Q1FY15

Fees on lending & securities

AUMIB

business*Other fee income

Total Fee Income

Sales TradingOther

trading & investment

Trading & Investment

GeneralLife &

TakafulInsuranceBusiness

Others Q1FY16

Q1FY16 45.9 39.5 36.0 30.1 151.5 22.9 (0.7) 34.4 56.6 115.7 4.5 120.2 18.9

Q1FY15 60.4 41.3 49.9 28.6 180.2 21.3 4.6 400.4 426.2 134.0 15.7 149.7 13.9

% of Composition

Q1FY16 13% 11% 10% 9% 44% 7% 0% 10% 16% 33% 1% 35% 5%

5.3%

Non-interest income movement

13.6% 19.7%

347.2 mil

770.2 mil

4.3%

Gross divestment gain of RM390m

Subdued investment banking and lending / activities, pipeline remains healthy


EXECUTIVE SUMMARY







LDR1 of 84.0%

AmBank Islamic Bhd

1. RM2b Subordinated Musyarakah Sukuk

2. RM3b senior sukukmusyarakah programme

3. RM3b Basel III-compliant Subordinated SukukMurabahah Programme via Tawarruq arrangement

AMMB Holdings Bhd

1. RM2b Medium Term Notes (Senior & Subordinated)

Funding diversity underpinned by

CASA: RM18.8 billion Fixed deposits: RM71.1 billion

(strong retention)

Supplemented by term funding & debt capital

AmBank (M) Bhd

1. RM500m Innovative Tier 1 Capital Securities Programme

2. RM500m Non-innovative Tier 1 Capital Securities Programme

3. USD200m USD Subordinated Term Loan

4. RM2b Medium Term Notes

5. RM4b Tier 2 Subordinated Notes

6. RM7b Senior Notes2

7. USD2b Euro Medium Term Notes

1. Includes stable funding sources 2. 1st senior notes issuance by a financial institution in Malaysia

AmBank (M) BhdAmBank Islamic

Bhd

Loans with Recourse

Recourse obligations on loans sold to Cagamas -maturing in 2017

Islamic financing sold to Cagamas –maturing in 2016

• Statutory reserve and liquidity requirement savings

• Reduced exposure to interest rate risks

Funding characteristics

• Improve funding stability, maturity gap & liquidity ratios

• Reduce dependence on short-dated deposits to fund long-dated fixed rate loan assets which incur liquidity risk and interest rate risk

• Diversifies investor base

• No obligation for buy back since we are not exposed to withdrawal risks and the notes are traded in the open market

• Enable depositors to invest in long and medium dated papers

Diversifying funding sources and maturity profile


EXECUTIVE SUMMARY







ANZ diversified footprints in Asia

Value proposition

• Seconding ANZ staff into key roles

• Providing technical expertise

• Support new product development

• Two-way customer referrals

• Joint account planning

• Access to regional network & connectivity

Board representation – AMMB Holdings Bhd

• Shayne Elliot – Director (Chief Financial Officer, ANZ)

• Mark Whelan – Director (CEO Australia)

• Suzette Corr – Director (General Manager HR Australia and Group General Manager Talent & Culture, ANZ)

Board representation –AmBank (M) Bhd, AmBank Islamic Bhd & AmInvestment Bank Bhd

• Graham Hodges – Director (Deputy Chief Executive Officer, ANZ)

Management representation

• Mandy Simpson – Chief Financial Officer

• Nigel Denby – Chief Risk Officer

• Tan Chin Aun - Transaction Banking

• Oscar Demirtas - Senior Programme Manager, Small Business Banking

Partnership with ANZ since 2007

Source: ANZ website

ANZ & AmBank Group Partnership

29 Asian markets, 5 Partnerships


EXECUTIVE SUMMARY







IAG diversified footprints in Asia

Value proposition

• Involved in the management of AmGeneral Insurance, offering skills transfer, partnership and relationship models of IAG

• Adding value through claims re-engineering savings, increased revenue via product development, underwriting and pricing

Board representation

• Duncan Brain – Director (CEO, IAG Asia)

• Aidan Pallister – Director (Deputy CEO / COO of IAG Asia)

Management representation

• Derek Roberts – CEO, AmGeneral Insurance Berhad

• Arron Mann – General Manager, Claims

• Chris Tandy – General Manager, Personal and Commercial Pricing

Partnership with IAG

AmGeneral: Leveraging strategic partnership with global insurance partner

2 subsidiaries in Thailand & Vietnam Investment in associates in Malaysia, China &

India

Source: IAG annual report 2014

https://www.kurnia.com/malaysia

https://www.kurnia.com/malaysia


EXECUTIVE SUMMARY







Perlis

Kedah

PulauPinang

Perak

SarawakKuala Lumpur

Putrajaya

NegeriSembilan

Melaka Johor

Pahang

Selangor

Labuan

SabahTerengganu

Kelantan

Brunei Darussalam

Other Customer Touch Points

Branches ATM RBC

Perlis 1 4

Kedah 5 28

Pulau Pinang 14 48 1

Perak 19 47

Selangor 33 248

Kuala Lumpur 29 133 1

Putrajaya 1 3

Negeri Sembilan 6 38

Melaka 5 37

Johor 21 94 1

Pahang 9 33 1

Terengganu 5 20

Kelantan 2 22

Sabah 9 36 1

Labuan 1 2

Sarawak 15 49 1

175 842 6

Population Density: <100 persons per km2 101-500 persons per km

501-1,000 persons per km2 1,001--1,500 persons per km2

> 1,501 persons per km2

AmBank Islamic

branches

Weekend Banking Branches

ATMs @ 7-Eleven

ElectronicBanking Centres

Internet & Mobile

BankingAmGeneral AmMetlife AmInvestment MBF

3 75 377 181AmOnlineAmGenie

32(include 28

dual branded branches)

18 branches52 agencies

14 26

Note(s):

Brunei: AmCapital (B) Sdn Bhd

Nationwide Branch Network

Multiple distribution channels aligned to demographics

RBC: Regional Business Centres


EXECUTIVE SUMMARY







AMMB Holdings Berhad

23.8%1 AmCorp 13.0% EPF 16.2% Others 47.0%

100% AmBank (M) Berhad

100% AmInvestment Group Berhad

100% AmInvestment Bank Berhad


27% 27% 26% 29% 31% 29% 27%

1.ANZ: ANZ Funds Pty Ltd,a wholly owned subsidiary of Australia and New Zealand Banking Group Limited2.Formerly known as AmG Insurance Berhad3.Formerly know as Kurnia Insurans (Malaysia) Berhad4.MetLife owns 50% plus one share in AmMetLife Insurance Berhad, with the remaining shares held by AmBank Group, and AmBank

Group owns 50% plus one share in AmMetLife Takaful Berhad, with the remaining shares owned by MetLife

Foreign shareholding excluding ANZ

100% AmBank Islamic Berhad

100% MBF Cards (M’sia) Sdn Bhd

33.33% Bonuskad Loyalty Sdn Bhd

100% AMAB Holdings Sdn Bhd

51% AmGeneralHoldings Berhad2

~50% AmMetLifeTakaful Berhad4

~50% AmMetLifeInsurance Berhad4

100% AmGeneral Insurance Berhad3

49%

~50%

~50%

As at 30 June 2015

Retail Banking Wholesale Banking Islamic Banking General InsuranceLife Assurance &

Takaful

Solid shareholding structure & franchise value


EXECUTIVE SUMMARY







Buy/Outperform/Overweight/AddP/EPS & P/BV as at 31 Mar 2015

1.8%

-8.1%

25.8%

54.1%

56.1%

97.3%

97.1%

-8.0% 12.0% 32.0% 52.0% 72.0% 92.0% 112.0%

MBB

CIMB

KLCI

AMMB

RHB Cap

PBB

HLBK

(Note: 18 May 2007 vs. 30 Jun 2015)

Ratings FY2007 FY2015

AmBank (M)RAM

LT: A2, ST: P1 Outlook: Stable

LT: AA2, ST: P1Outlook: Stable

S&P LT: BBB-, ST: A-

3 Outlook: Stable

LT: BBB+, ST: A-2

Outlook: Negative

Moody’sLT: Baa2, ST: P-3Outlook: StableBFSR: D-

LT: Baa1, ST: P-2Outlook: Stable*BCA: Baa3*Adj BCA: Baa3

AmInvestment RAMLT: AA3, ST: P1 Outlook: Stable

LT: AA2, ST: P1 Outlook: Stable

AmBank Islamic

RAMLT: A2, ST: P1 Outlook: Stable

LT: AA2, ST: P1 Outlook: Stable

AMMB RAM NALT: AA3, ST: P1 Outlook: Stable

TP: target priceSell/Underperform/Fully valued/Reduce/Underweight

Hold/Neutral/Market perform Source : Bloomberg as at 16 July 2015

+3

+3

+1 Notches of ratings upgrades since 2007

+1

AMMB HOLDINGS BERHAD P/EPS : 9.21P/BV : 1.23

Market Price : RM5.88

Banking Sector Share Price Movement Upgraded ratings

Target Price and Recommendations

+3

Average TP : RM6.28Buy : 3 (12%)Sell : 5 (20%)Hold : 17 (68%)Average TP / Average CP : 1.05x

Banking sector share price movement / target price and recommendations

* Upgrade from ba1 on 16 Jun 15

+2


EXECUTIVE SUMMARY








ECONOMY & INDUSTRY


EXECUTIVE SUMMARY







101

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1

2008 2009 2010 2011 2012 2013 2014 2015

BCI

Business Conditions Index

Moderating growth

Promising start, growth in domestic and export orders

Upward pressure on inflation remains, unemployment rates stable

FDIs remain robust

points

Source: BNM & Bloomberg

Malaysian economy is on a steady growth trajectory

5.6%

7.9%

7.9%

0%

5%

10%

15%

20%

25%

30%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2010 2011 2012 2013 2014 2015

GDP Consumption Investment

2.2%

3.1%

0%

1%

2%

3%

4%

5%

Mar

June

Sept

Dec

Mar

June

Sept

Dec

Mar

June

Sept

Dec

Mar

June

Sept

Dec

Mar

June

Sept

Dec

Mar

June

2010 2011 2012 2013 2014 2015CPI Unemployment

12.4 9.9

-10

0

10

20

30

40

50

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

2008 2009 2010 2011 2012 2013 2014 2015

TD FDI (Q1)

RM' bil


EXECUTIVE SUMMARY







4.57%

3.25%

6.79%

3.88%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Avg lending rate (commercial banks) Average OPR Average BLR Base rate

1.6%

97.5%

80.0%

85.0%

90.0%

95.0%

100.0%

105.0%

110.0%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

Mar

Jun

Sept

Dec

Mar

Jun

Sept

Dec

Mar

Jun

Sept

Dec

Mar

Jun

Sept

Dec

Mar

Jun

Sept

Dec

Mar

Jun

2010 2011 2012 2013 2014 2015

GIL LLC

6.8 6.1 6.8

2.41.4 0.6

3.2

1.7 0.8

1.4

2.31.7

13.8

11.5

9.9

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

2012 2013 2014

Annual Change

(%)

Residential property Hire purchase Personal use

Others* Annual Change (%)

Gradual slowdown in the household debt growth

Interest rates expected to remain in the ST Improving asset quality

Well-contained risks despite increase in household indebtedness

34.2% 34.6% 33.0% 31.2% 30.9%

74.5% 76.2%81.3%

86.7% 87.9%

24.9%19.7%

16.3% 14.7% 13.3%0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

2010 2011 2012 2013 2014

Gross national savings Household debt/GDP

Retail impaired loans ratio*

To be updated for the his

Higher household debt, but retail impaired loans ratio trending down

* Retail comprise purchase of transport vehicle, purchase of residential property, personal use and credit card

Loan loss coverageGross impaired loans


* Effective 2 January 2015, the Base Rate would replace the Base Lending Rate as the main reference rate for new retail floating rate loans


EXECUTIVE SUMMARY







3.3

18.5

0

5

10

15

20

25

30

35

40

45

50

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2010 2011 2012 2013 2014 2015

New issues of equity New issues of debt

1,684.0

82.4%

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2010 2011 2012 2013 2014 2015

Total deposits LD ratio

15.2%

13.1%

12.3%

8%

13%

18%

Mar

Jun

Sept

Dec

Mar

Jun

Sep

Dec

Mar

Jun

Sep

Dec

Mar

Jun

Sep

Dec

Mar

Jun

Sept

Dec

Mar

Jun

2010 2011 2012 2013 2014 2015

RWCAR Tier 1 CET 1

Capital levels above BNM’s Basel 3 guidelines

Moderating loans growth

Capital activities supported by debt issuance

Sustained deposits growth provides liquidity


Capital remains sound in the banking sector, loans growth moderating

Beginning January 2013, capital components are reported based on Basel III Capital Adequacy Framework

Basel II Basel IIIRM’bil

RM

’mil

8.3%

9.2%

8.7%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Mar JuneSept Dec Mar JuneSept Dec Mar JuneSept Dec Mar JuneSept Dec Mar JuneSept Dec

2010 2011 2012 2013 2014

Retail yoy growth Non Retail yoy growth Total loans yoy growth

8.6%

9.5%

9.1%

5%

7%

9%

11%

13%

15%

17%

Mar Jun SeptDec Mar Jun SeptDec Mar Jun SeptDec Mar Jun SeptDec Mar Jun SeptDec Mar Jun

2010 2011 2012 2013 2014 2015

Retail yoy growth Non Retail yoy growth Total loans yoy growth


EXECUTIVE SUMMARY







• RM48k (USD15k)

GNI per capita

• RM1.7 trillion GNI

• 6% annual GDP

growth

GROSS NATIONAL INCOME

JOBS

• 31.6m population

• 3.3m additional jobs

TRANSFORMATIONAL ACTIONS

INVESTMENT

Focus Drivers:

• 12 NKEAs, 131 EPPs

• 60 Biz Opportunities

• Private-sector led

Competitiveness ‘Enablers’

• 6 SRIs & 51 Policy Measures

• RM1.4 trillion investment

• 92% private investment

• 8% public investment

• 73% DDI, 27% FDI

ECONOMIC TRANSFORMATION

PROGRAMME

ETP Overview Achievement of 12 NKEAs in 2013 and 2014

2020Target

2011 2012 2013 2014 To-date% of

Target

Investment (USD’bil) 444.0 94.8 21.7 15.2 14.4 146.1 32.9%

GNI per capita (USD per capita) 15,000 9,710 228 168 320 10,426 69.5%

Job Creation (mil) 3.3 0.2 0.4 0.4 0.5 1.5 45.5%

Note:• Scoring is calculated by a simple comparison against set 2013 and 2012 targets respectively. (*) The overall NKEA composite scoring is the average of all scores.• Data was correct as on ETP announcement date, the ETP is an evolving programme, in the past 2 years, some EPPs have been dropped, some new ones were added

ETP : Economic Transformation Programme Source ETP Annual Report 2013 & 2014, Resaerch House Report

Tracking of EPPs

NKEAs

2020 Target KPI Scoring*

GNI(RM’bil)

New Jobs 2014 2013

Greater KL/ Klang Valley 190 320,000 103% 98%

Oil, Gas & Energy 131.4 52,300 108% 97%

Financial Services 180.2 275,400 121% 117%

Wholesale & Retail 55.4 454,190 104% 124%

Palm Oil & Rubber 230.9 41,600 106% 78%

Tourism 66.7 497,000 126% 115%

Electrical & Electronics 53.4 157,000 104% 105%

Business Services 78.7 245,000 96% 102%

Communications Content & Infrastructure

57.7 43,162 110% 101%

Education 31.8 535,000 116% 102%

Agriculture 28.9 109,335 120% 98%

Healthcare 35.3 181,000 105% 103%

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


EXECUTIVE SUMMARY







2,053

2,865

3,534

5,445

10,804

56,319

Vietnam

Phillippines

Indonesia

Thailand

Malaysia

Singapore 0.6 -4.8

3.3 -1.4

-4.0 3.1

-4.0 -0.6

2.7 6.0

7.9 8.8

Source: World Economic Outlook Database April 2015

Malaysia remains an attractive investment destination

GDP per capita, 2014 (USD) Unemployment (%) Inflation (%)Real GDP growth 2014 2015F

0.8%

2.0%

2.9%

2.8%

6.1%

7.1%

Thailand

Singapore

Malaysia

Vietnam

Indonesia

Philippines

1.0%

1.9%

3.1%

4.2%

4.1%

6.4%

Singapore

Thailand

Malaysia

Philippines

Vietnam

Indonesia

Population (mil) Savings rate (% of GDP) Current Account Balance(% of GDP)

Government structuralBalance (% of GDP)

0.0

4.2

-1.2

0.2

-2.1

-3.9

Vietnam

Singapore

Thailand

Philippines

Indonesia

Malaysia

5.5

30.3

68.7

90.6

99.4

251.5

Singapore

Malaysia

Thailand

Vietnam

Philippines

Indonesia

23.9

31.1

29.4

29.8

30.9

46.7

Philippines

Vietnam

Thailand

Malaysia

Indonesia

Singapore

-3.0

3.8

4.4

4.6

5.4

19.1

Indonesia

Thailand

Philippines

Malaysia

Vietnam

Singapore


EXECUTIVE SUMMARY







Glossary / Disclaimer of warranty and limitation of liability

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

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

• accounting and provisioning policies (eg 5 and 7 year rules)• differences between economic and accounting hedges• prior period catch ups (eg backdated salary costs)• strategic investments and divestments (eg ANZ partnership), and • tax and regulatory regimes (eg deferred tax asset write off due to reduction in corporate tax rates)

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

Business DivisionsBusiness 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 SegmentsOperating 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 signif icant risks and uncertainties. Actual results may differ from those set forth in the forward looking statements. AMMB Holdings does not undertake to update the forward looking statements to reflect impact of circumstances or events that may arise after the date of this presentation.

The information in the presentation is not and should not be construed as an offer or recommendation to buy or sell securities. Neither does this presentation purport to contain all the information that a prospective investor may require. Because it is not possible for AMMB Holdings or its affiliates to have 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


EXECUTIVE SUMMARY







Glossary / Disclaimer of warranty and limitation of liability

Your Bank. Malaysia’s Bank. AmBank.

The material in this presentation is general background information about AmBankGroup’s activities current at the date of the presentation. It is information given insummary form and does not purport to be complete. It is not intended to be relied uponas advice to investors or potential investors and does not take into account theinvestment objectives, financial situation or needs of any particular investor. Theseshould be considered, with or without professional advice when deciding if an investmentis appropriate.

For further information, visit www.ambankgroup.com;

or contact

Alex Goh

Senior Vice President, Investor Relations

Tel: +603 2036 1435

Fax: +603 2031 7384

Email: [email protected]

[email protected]

http://www.ambankgroup.com/

mailto:[email protected]

mailto:[email protected]

Documents

19 Aug 2015 Q1FY2016 Results Investor Presentation · Q1FY2016 Results –Investor Presentation Media reports on alleged individual accounts and transactions “linkedto”AmBank