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AMBANK GROUP – INVESTOR RELATIONS – PRESENTATION INVEST MALAYSIA 12-13 APRIL 2011CONFIDENTIAL

AMMB Holdings Berhad

Cheah Tek KuangGroup Managing Director

AmBank Group

Invest Malaysia 2011

Kuala Lumpur12 - 13 April 2011

AMBANK GROUP – INVESTOR RELATIONS – PRESENTATION INVEST MALAYSIA 12-13 APRIL 2011CONFIDENTIAL 1(Conventional + Islamic)

AmBank Group – staying focused on profitable growth, diversification and sustainability

• On track to deliver 4th consecutive year of record performance

• AmBank (M) & AmInvestment Bank upgraded to BBB/A-2/Stable by S&P

• FY2011 Priorities

Profitable growth, diversification & rebalancing

Faster non-interest income & deposit growth

Staying Ahead

• 30+ years banking franchise

• Top 20 on Bursa Saham

• Strategic partnership with ANZ

• Retail Banking and Business Banking

sound contributions

• Life Assurance, General Insurance and Markets

diversified portfolios yielding higher profits

• Corporate & Institutional Banking and Investment Banking

good pipeline

Well diversified Divisional contributions

• Proactive risk management

• Balance sheet positioned for rising interest rates and Basel III

• Implemented new funds transfer pricing and FRS disciplines

Improved risk and financial disciplines


47.6 bil 52.6 bil 56.9 bil 64.4 bil 10.6 % 69.5 bil2 8.2%3

42.4 bil 55.8 bil 64.1 bil 70.3 bil4 18.4 % 76.9 bil5 14.2%

10.1% 14.1 % 15.2 % 15.8 % 1.9 % 15.1% 0.2%

112.3 % 94.3 % 88.8 % 91.7 % -6.9 % 90.5%6 5.0%

Transformational changes have delivered tangible results

Notes :1 CAGR based on underlying PATMI of RM556.9 mil in FY07 and RM1,009.4 mil in FY102 Includes Islamic loans sold with recourse : 9MFY10 = RM365mil and 9MFY11 =RM1,582mil3 AmBank Group’s 2-year net loans growth CAGR = 9.6%; system 2-year loans growth CAGR = 10.1%4 Includes Senior Notes of RM1.42 bil issued as at FY20105 Adjusted customer deposits includes Senior Notes RM3.39 bil, credit‐linked notes RM0.17bil, loans sold with and without recourse6 Based on net loans including loans sold with recourse, over adjusted customer deposits as above

FY07 FY10FY08 FY09CAGR

(FY07 – FY10)

Change (9MFY11vs 9MFY10)

Pe

rfo

rma

nce

PATMI

EPS

ROA

ROE

Gro

wth

Ris

k, C

apit

al &

Fu

nd

ing

Pro

file

Net Lending

Customer Deposits

Net NPL RatioGross impaired

loans

RWCR

LD Ratio

(282.5) mil 668.5 mil 860.8 mil 1,008.6 mil 21.9%1 1,026.5mil 34.0%

-5.8 % 11.5 % 11.7 % 11.5 % flat 13.9% 2.0%

-0.37 % 0.82% 1.04% 1.13% 0.50 % 1.43% 0.28%

-13.3 sen 28.2 sen 31.6 sen 34.7 sen 10.0 %1 45.3 sen 28.0%

6.2% 3.7% 2.6% 1.5% -1.6%

3.8% 3.4%

9M FY11

Annualised

N/A N/A

(Conventional + Islamic) CONFIDENTIAL AMBANK GROUP – INVESTOR RELATIONS – PRESENTATION INVEST MALAYSIA 12-13 APRIL 2011 3(Conventional + Islamic)

69.1%

61.5%

37.7%

36.6%

28.7%

-3.0%

10.2%

-10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%

RHB

AMMB

CIMB

PBB

HLFG

MBB

KLCIRatings FY07 9MFY2011

Am

Ban

k (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/D-/Stable Baa2/P-3/D/Stable

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

Am

Inve

stm

en

t 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 ratingsBanking Sector Share Price Movement relative to FBM KLCI

Greater investor confidence on performances, strategy & execution focus

Source: Bloomberg, as at 11 Mar 2011

Consistent support from analysts

Index change market price close of 11 Mar 11 vs. 4 Mar 11P/EPS : EPS annualized Jan 10 – Dec 10P/BV : BV as at 31 Dec 2010Notes: TP: target price CP: weekly average closing price

Sell/Underperform/Fully valued/Reduce/Underweight

Hold / Neutral / Market perform

Buy/Outperform/Overweight/Add

Ranking Company 31 Dec 2010 1 Jan 2010YTD

Change%

1 RHBCAP 8.72 5.30 3.42 64.5%

2 AXIATA 4.74 3.05 1.69 55.4%

3 GENTING 11.24 7.34 3.90 53.1%

4 GAMUDA 3.92 2.60 1.32 50.8%

5 7.05 5.00 2.05 41.0%

6 PLUS 4.57 3.26 1.31 40.2%

7 PETDAG 12.00 8.70 3.30 37.9%

8 KLK 22.38 16.50 5.88 35.6%

9 CIMB 8.62 6.42 2.20 34.3%

10 GENM 3.51 2.81 0.70 24.9%

Rank #5…

Source: Bloomberg

Rank #2…

2010 performance of FBM KLCI's 30 components

(Note: 18 May 2007 vs. 14 Mar 2011)

AMMB


Note :1in-house research as at 4 April 2011

Opportunity

• Malaysian economic recovery led by domestic demand & higher retail consumption(GDP CY 2011e : 5.5%1)

• Supportive monetary policies, continued trade surplus; domestic demand leadingthe way

• Economic Transformation Programme (ETP) & recently announced EPP’s (entry pointprojects) to mitigate global risk & moderating external demand

• System lending growth may moderate in CY2011

• Anticipating OPR hike of circa 25bps in CY2011

• Higher common equity & stable funding requirements under Basel III, but withlonger transition period

• Execute to strategic themes & strengthen market positions

• Leverage opportunities in domestic economy

• Better positioned for rising interest rates

• Leverage ANZ’s international connectivity

2Industry :Emerging

Opportunities & Challenges

1Malaysia :

Stable Outlook

3AHB :

Leveraging Tailwinds


Announcement Major NKEAsTotalEPPs

InvestmentRM’bil

New jobs

Round 4(8 Mar 2011)

Wholesale & retailOil, gas & energyTourism

23 15 88k

Round 3(11 Jan 2011)

Oil, gas & energyWholesale & retailGreater KLTourism

19 67 52k

Round 2(30 Nov 2010)

Oil, gas & energy 9 8 71k

Round 1(25 Oct 2010)

Greater KL, E&EWholesale & retail

9 5 13k

ContentsEconomic Transformation Programme will benefit the banking sector– Propelling Malaysia towards becoming a High-Income, Developed Nation

4 strategic thrusts to transform Malaysia towards Vision 2020

1 Malaysia

10th Malaysia Plan

Government Transformation

Programme

Economic Transformation

Programme

Economic Transformation Programme (ETP) roadmap

RM661bil

RM442b

RM359b

RM275b RM1.7tril

USD188bil

USD523bil

USD138b

USD112b

USD86b

2009 GNI Entry Point Projects (EPP)

(BO) Biz opportunities

Other sector growth

2020 GNI target

RM23.7k GNI (USD6.7k)per capita

1 2 3

National Key Economic Activities (NKEA)

131 EPPs

>RM48k GNI (USD15k) per capita

3.3 mil new jobs

Rural 25

Urban 106

131 EPPs across Malaysia

Rural 8.7mil

Urban 19.3 mil

EPP allocation vis-à-vis population

breakdown

Total investment : USD 444 bil

Public 8%USD34 bil

Private sector 92% USD410 bil

73% domestic direct investment

8% public funding (USD34 bil) & 92% private funding (USD410 bil)

Note :GNI = gross national income NKEA = National Key Economic Activities EPP = Entry Point ProjectsSource : www.pemandu.gov.my

Shift to service-based economy to contribute 65% (current 58%)

Entry Point Projects announced todate


AMMB Holdings Berhad

AmBank Group

9MFY2011

Financial Results

Ashok RamamurthyDeputy Group Managing Director &

Group Chief Financial Officer


Net interest income 1,797.1 2,085.5 2,289.2 2,518.5 2,053.7 +11.1%

Fee and commission 461.3 582.1 511.2 618.2 513.0 +9.4%

Investment and trading 340.2 245.6 6.6 298.5 236.3 -5.0%

Insurance business 84.7 94.1 121.3 123.7 136.1 +46.5%

Others 61.6 28.8 (0.9) 18.2 12.4 +9.7%

Total income 2,744.9 3,036.1 2,927.4 3,577.0 2,951.4 +10.5%

Expenses 1,066.6 1,221.3 1,268.8 1,501.4 1,165.9 +7.0%

PBP 1,678.3 1,814.8 1,658.6 2,075.7 1,785.5 +13.0%

Impairments / Allowances 1,762.9 620.4 441.0 699.0 345.9 -32.5%

PATMI (282.5) 668.5 860.8 1,008.6 1,026.5 +34.0%

Strong and consistent financial performance for 9MFY2011

REPORTED

FY07 FY08 FY09 FY10RM mil 9M FY119M FY11

vs 9M FY10

Favourable growth in 9M FY11 Unfavourable growth in 9M FY11


Diversified and sustainable divisional contributions

Note 1 : Life Assurance surplus is transferred into life policy shareholders’ fund in overall Group accounts

PATMI (by division)

9MFY10 results Positive growth in 9MFY11 Contraction in 9MFY11

RM'mil 9MFY10 9MFY11

Retail Banking 399.3 450.1 +12.7%

Business Banking 125.9 148.8 +18.2%

Corporate & Institutional

Banking (CIB) 124.8 153.5 +23.0%

Investment Banking 104.2 90.5 -13.1%

Markets 88.6 151.2 +70.7%

Assurance 56.7 97.8 +72.5%

Life Assurance 19.1 51.6 +>100%

General Insurance 37.6 46.2 +22.9%

Operating Segments (132.6) (65.4) +50.7%

9MFY11 vs

9MFY10

Retail, 44%

Business,14%CIB, 15%

Investment, 9%

Markets, 15%

Life, 5%

General,4%

Operating-6%

PATMI contribution %

10%


53.5 56.9 59.766.6

71.9

FY07 FY08 FY09 FY10 9MFY11

RM'bilGross Loans

Balancing loans and strong customer deposits growth

9MFY10 results Positive growth in 9MFY11 Contraction in 9MFY11

40.2

51.658.4 62.4

67.35.3

6.3

6.88.4

9.5

FY07 FY08 FY09 FY10 9MFY11

RM'bil

Customer Deposits

CASA All other deposits

Customer 45.5b 57.9b 65.2b 70.8b 76.9bdeposits 1

p 7.9% p 8.6%

RM'mil 9MFY10 9MFY11

Balance Sheet - Lending / Financing

Gross Loans / Financing 66,311.7 71,874.8 +8.4%

Net Loans / Financing 64,238.9 69,529.0 +8.2%

Balance Sheet - Deposits

Customer Deposits 67,292.6 76,851.6 +14.2%

LD Ratio 95.5% 90.5% -5.0%

CASA Deposits 8,227.8 9,540.2 +16.0%

CASA Proportion 12.3% 13.5% +1.2%

9MFY11 vs 9MFY10

1

2

2

Note :1Adjusted Customer Deposits : includes RM3.39 bil Senior Notes, RM0.17bil credit-linked notes, loans sold with and without recourse2LD : net loans including loans sold with recourse / adjusted customer deposits + loans sold with and without recourse


Asset quality benefitting from differentiated product growth strategies

Asset Quality Indicators

Net NPL Gross NPL Loan loss coverage Gross impaired loans Allowance coverage

4.28 5.78

4.60 3.18

2.02 1.50 1.01 2.54 2.47 2.56 2.41

39.3% 32.2% 36.7%

56.6%67.3%

75.1%

99.5%89.1% 93.7% 95.5% 97.4%

-60%

-20%

20%

60%

100%

-

5.0

10.0

15.0

RM'bil

6.06

7.60

6.145.53

3.602.43

1.87

FRS 139

Allowance coverage9MFY11 / Day1 change h8.3%

Gross impaired loans9MFY11 / Day1 change i5.1%

2.24%1.92% 1.73% 3.18%

0.97% 0.60%0.88%

0.56% 0.59% 0.69%

14.8%

17.4%

12.4%

10.4%

6.3%

4.1%2.8%

3.8% 3.6% 3.6% 3.4%

10.9%

13.8%

9.6%

6.2%

3.7%2.6%

1.5%

0%

5%

10%

15%

20%

FRS 139

Gross impaired loans %9MFY11 / Day1 change i0.4%

Gross impaired loans Loan loss chargeGross NPL ratio Net NPL ratio Net provisions charge

FY2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY2010 Day 1 Q1FY11 H1FY11 9MFY11


Portfolio rebalancing towards viable segments and diversification on track

Gross Loan / Financing movement (gross before netting loans sold to Cagamas)

by Interest Rate Typeby Retail & Business / Corporate

FY08

RM'bil

Retail

Biz / Corp & others10.8 9.9

1.2

13.8

11.6

1.4

Business Banking (ex GLR)

Corporate & Institutional

Banking

Others

17.9%

12.7%

27.2%

FY08

RM'bil

Retail

Biz / Corp & others

24.4

13.6

0.9 0.9 2.0 2.5

14.0

1.02.3

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

RM'bil Dec '10 Dec '09

3.3%

7.4%

4.9%11.0%

10.9%

0.2%

2.6

0.8

24.3

Loan Composition %33.9% 19.6% 1.4% 1.2% 3.7%3.1% 19.2% 16.2% 1.9%

Retail (63%) Business / Corporate (37%)

Retail banking loans growth : 1.6%

RM'bil Mar-08 Mar-09 Mar-10 Dec-10

Retail 74% 72% 65% 63%

Biz / Corp & others 26% 28% 35% 37%

RM'bil Mar-08 Mar-09 Mar-10 Dec-10

Fixed rate :

Conventional 47% 43% 39% 36%

Islamic 15% 17% 17% 15%

62% 60% 56% 51%

Variable rate :

Conventional 38% 40% 43% 46%

Islamic 0.1% 0.3% 1.6% 3.7%

38% 40% 44% 49%


1,165 1,430 1,701 2,035

2,388 2,583

341 383 352 449

583 428

-1200

-400

400

-

2,000

4,000

Gross PremiumFund Assets

Life Fund Assets Gross Premium

602 696

811 902

1,017

1,135

438 476 546 586 624 488

-2,000

-1,000

0

-

500

1,000

1,500

Gross PremiumFund Assets

General Fund Assets* Gross Premium

39,941 92,845 49,908 46,596

60,497

7%8% 8% 8% 8%

-5.0%

0.0%

5.0%

10.0%

-

40,000

80,000

120,000

Market ShareTrading Value

Trading Value Market Share

10,219

14,976 18,291

15,954 19,273

24,215

14%

17%15%

14%13% 12%

-10.0%

0.0%

10.0%

-

10,000

20,000

30,000

Market ShareAUM

Asset Under Management Market Share

Institutional & Unit Trust AUM

p 26%

Good momentum in Assurance and key Investment Banking portfolios

FY06 FY07 FY08 FY09 FY10 9MFY11 FY06 FY07 FY08 FY09 FY10 9MFY11

General Insurance

*Prior to December 2008, based on general funds per BNM DGI returns. December 2008 & post December 2008 based on BNM DGI returns with total asset (general funds + shareholders’ funds)

RM’mil

2006 2007 2008 2009 2010

Brokerage

Life Assurance

p 8%p 12%

Unit trust : Institutional funds at ratio 55% : 45%


Strong capital position and improving returns

Notes :

1 Proforma including unappropriated profits of AmIslamic and AmInvestment Group

2 Capital adequacy by legal entity, 9MFY2011 (after proposed dividends)

- AmBank (M) Berhad Tier 1 : 10.1%, RWCA : 15.0% - AmInvestment Bank Berhad Tier 1 : 25.1%, RWCA : 25.1% - AmIslamic Bank Berhad Tier 1 : 9.1%, RWCA : 14.0%

5.8% 7.6% 7.7% 8.1% 7.3%

6.8%8.5% 9.7% 10.3% 9.4%10.1%

14.1%15.2% 15.8% 15.1%

FY2007 FY2008 FY2009 FY2010 9MFY2011RWCA Tier 1 Ratio Common Equity Ratio

Proforma 1

15.2%

9.5%

7.4%

Capital adequacy Capital management plan

1. Optimise capital profile & buffer

2. Increase scenario modeling

3. Streamline corporate structures

4. Develop dynamic dividend policy

5. Proactively manage Basel III requirements

(13.3)

28.2 31.6 34.7 45.3

EPS, basicsen/share

-0.17%

1.02% 1.04% 1.13% 1.43%

ROA, %

FY07 FY08 FY09 FY10 9MFY11 FY07 FY08 FY09 FY10 9MFY11 FY07 FY08 FY09 FY10 9MFY11

9MFY11 / FY10 change h2.4%FY10 / FY09 change i0.2%

9MFY11 / FY10 change h0.30%FY10 / FY09 change h0.09%

9MFY11 / FY10 change h30.5%FY10 / FY09 change h9.8%

Profitability


ANZ’s super regional presence and aspirations, a significant advantage to AmBank Group

2011 – 2017

Realise full potential of Super Regional aspiration

Capturing value:

• To Asia

• Within Asia

• From Asia

( ) – number of branches & representative offices in each country

Director

Dr. Robert John EdgarBoard

Director

Alex Thursby

Senior Management

Deputy Group MD & Group CFO

Ashok Ramamurthy

Chief Risk Officer

Andrew Kerr

Chief General Manager, Transformation, Channels & Sales

ManagementHead, Governance &

ProvisioningHead, Market Risk

Head, Systems Accounting2

Chief Operations Officer

Ross Neil Foden

Director

Mark Whelan

Head, FX & Derivatives

ANZ has provided key resources and support to AmBank Group

Senior General Manager,

Transaction Banking

APEA sourced revenue to drive 25% - 30% of Group profit1

Notes :1 ANZ’s 2017 aspiration2 support role


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

Strategic partnership with global partner, ANZ

Experienced management team

Solid corporate structure & franchise value

• Well diversified universal bank & # 4 largest banking group (market capitalization)

• # 4 retail bank, # 5 business and CIB lending

• Top 2 investment bank, #5 Islamic banking, #7 general insurance

• 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 (804), 402 ATMs @ 7/11 and 143 EBC’s

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

• Pioneer in weekend banking concept

• ANZ value adds through leadership & management, product development, technical expertise and two way customer flows

• Experienced management team with key ANZ appointments

• 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


Strategic business transformation

• Complete structural realignment to improve target segment focus• Develop customer centric retail business model - part of AmHorizon• Implement account plans for business customers and increase SOW• Expand product offerings and build new capabilities in Markets Division

Growth initiatives

• Commence leveraging ANZ international connectivity – agree business principles and priorities

• Develop new wealth management strategy and commence execution• Enhance international trade and cash management business• Develop new family Takaful business with FP

Governance and

Enablement Functions

• Implement new retail and non retail PD/ LGD models, Security Indicators, Collateral Management, and Market risk systems (VIPER)

• Implement Basel III, capital allocations and new ALM system• Consolidate Operations into a new Centre of Excellence• Finalize vendor and commence core banking system replacement

* FTP = funds transfer pricing

To become Malaysia’s Preferred Banking Group with International Connectivity

• customer satisfaction

• sound financial performances

• well diversified and sustainable growth

As measured by

Key Strategic Thrusts1

Note 1 : for FY2011


PATMI ~

ROE

CTI

Net NPL ratio /Gross impaired loans

Dividend:Gross

Payout

Medium Term Aspirations and estimates

# Previous guidance : 25-30%

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

*

~ PATMI = profit after tax and minority interests

FY07 FY 08 FY 09 FY 10 9MFY 11 FY 2011 EstimateMedium Term

Aspirations (MTA)2012 - 2016

- RM282.5 mil

RM668.5

mil

RM860.8mil

RM1,008.6

mil

RM1,026.5

mil

circa 30%

#

14 – 18%

CAGR ^

- 5.8% 11.5% 11.7% 11.5% 13.9% circa 13% *FY13 onwards :

15 – 18% *

37.1% 39.6% 43.3% 42.0% 39.5% circa 40% 40 - 42%

6.2% 3.7% 2.6% 1.5% / 3.8% 3.4% circa 3.5% circa 2.5%

5.0 sen / share

(loss year)

6.0 sen / share

18.3%

8.0 sen / share

19.0%

10.5 sen / share

28.1%

H1FY11 interim

6.0 sen / share

25.8%

35 – 40% *

payout

≥ 40% *

payout


1. Good 9MFY2011 performance, portfoliodiversification on track for FY2011

2. Growth momentum expected tomoderate in FY2012 due to lower GDPgrowth (CY2011)

3. Strong foundations and clear mediumterm strategies

4. International connectivity with ANZ andaccess to world class “IP” and resources

5. Disciplined execution and governancerequired for sustainable performance


Diversified (public) and committed major shareholders

As at 31 December 2010

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

100% 70%*100%

100%

AmInvestmentBank Berhad

16.8% 11.8% 47.6%

Employees Provident Fund Board

AMMB Holdings Bhd

Amcorp Group Bhd Other shareholders

AmBank (M) Berhad

AmIslamic Bank Bhd

^ Insurance Australia Group Ltd – 49%

ANZ Funds Pty Ltd #

23.8%

AMFB Holdings Bhd

100%

51%^

AMAB Holdings Sdn Bhd

100%

AmG Insurance Berhad

AmLife Insurance Berhad

* Friends Provident Fund PLC – 30%

AmInvestmentGroup Berhad

100%

AHB completed acquisition of 100% equity interest in AmIslamic on 28 Feb 2011


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

or contact

Ganesh Kumar Nadarajah

Group General Manager, Group Investor Relations

Tel : +603 2036 1435 Fax : +603 2031 7384 e-mail : [email protected] or+6012 2974799 [email protected]

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