Maybank

Our Home Markets

In 2012, our three home markets in Malaysia, Singapore and Indonesia contributed 91.2% of total Group PBT on the back of strong economic fundamentals and domestic growth drivers including consumer spending and infrastructure investments. In Malaysia, where we have the largest distribution network, our strategy is to lead industry growth and ensure balanced growth across all key sectors. In Singapore, our long standing presence has enabled us to form strong relationships with our clients, and our service levels are consistently recognised by the industry. In Indonesia, we are encouraged by the traction that we see arising from the ongoing transformation programme, and as we expand our distribution network, we seek to grow in line with the industry. Our growth, however, will continue to be predicated on being able to grow profitably and responsibly, and to be able to conduct our activities in line with our mission of humanising financial services.

Malaysia

Malaysia remains the core domestic market for the Maybank Group, with 63.3% of Group gross loans originating from this market and contributing 69.8% of Group PBT. The domestic loan portfolio is well balanced between consumer and non-consumer segments. As at end 2012, 54% of the domestic portfolio comprised consumer loans, while corporate loans made up 32% and the remaining 14% were SME and Business Banking loans.

Our leading position in the overall loans and deposits markets is supported by a sizeable domestic franchise made up of 26,473 employees, 401 branches and over 4,700 self service terminals and mobile banking services.

In 2012, we achieved many milestones. We ranked first on the domestic league tables for M&As and ranked second for domestic bonds. We also retained our lead in the Islamic banking market, with Islamic loans contribution to total domestic loans up from 26.1% in 2010 to 30.6% in 2012. For 2013, we expect GDP to remain strong at above 5.0% on the back of sustained demand and strong investment. Given this stable economic growth, we expect industry loans to grow 10%-11% in 2013.

Singapore

Maybank operates one of Singapore's largest foreign banking networks, with 22 full service branches and five offsite ATMs.

Despite more challenging market conditions in 2012, our operations in Singapore continued to deliver profitable growth on the back of a 10.5% growth in loans. The loan portfolio was made up of 35% consumer loans and 65% commercial loans.

With the presence of Maybank Kim Eng, we are optimistic about the future growth potential. We are also keen to further expand Islamic financing in Singapore and will introduce Shariah-compliant retail financing and treasury solutions.

For 2013 we expect GDP to strengthen to an estimated 3.0% as external demand improves. Interest rates are expected to remain low, and inflation to ease. On the back of this outlook, the industry loan growth forecast is 9%-11%.

Indonesia

Since the acquisition of Bank Internasional Indonesia (BII) in 2008, our operations in Indonesia have progressed on the back of various transformation initiatives. In 2012, Indonesia's PBT increased to Rp1.68 trillion. Indonesia's contribution now makes up 7.0% of total Group PBT and asset quality continues to improve. Despite intense market competition, loans in Indonesia grew 21% from the previous year, while deposits grew 22%. Loans and deposits growth was supported by an improving franchise which includes 415 branches and 1,317 ATMs and CDMs.

Going forward, the Group remains focused on developing its business capabilities in Indonesia, including consumer and wholesale banking financial services. Islamic financing will also be a focus area. For 2013, Indonesia's GDP growth is expected to be above 6.0% supported by improving macroeconomics, social developments and infrastructure investments. System loans growth is expected to come in at 18%-20%.