SWOT ANALYSIS FOR MAYBANK STRENGTH Leading Regional Market.

. Largest bank in Malaysia in term of number of branches whereby 384 domestic branches and 190 international branches and office Largest listed companies on the Malaysian Stock Exchange, Bursa Malaysia, with market capitalization of over RM54 bilion (USD22 bilion) as end of March 2011 Capital Adequacy. Dividend Yield, Return on Assets (ROA) and Return on Equity (ROE) are substantially higher than the industry and sector average. Higher Returns. According to its FY2010 Financial Report Maybank showed low Overhead & Cost Has a customer base of more than 21 million A user friendly Website. www.maybank2u.com.my is the pioneer for internet banking in Malaysia. Have 3.8 million registered users, leading the market share by over 54% Maybank is the largest Banking Service provider in Malaysia with their ATM Machines widely available all over Malaysia. First instant international money transfer service owned by a Malaysia bank available through Malaysia, Singapore, Indonesia, Brunei, Philipines, Cambodia, Vietnam and Pakistan Product line diversification from loans, financing, deposit, insurance to investment Banks. Over 100% increase in Sales performance at branches increased product penetration in Maybanks corporate client product portfolio OPPORTUNITY WEAKNESS Much of Banking Operation are focused in and around Malaysia and Singapore, hence limited global penetration Much of the revenue comes from retail banking and Islamic Banking, less revenue comes from other offerings Revenue Concentration. With all the good branding and all, Maybank is still low of customer satisfaction rating. They are rated at number 17 (out of 17 banks in Malaysia) for customer service in year 2010 No continual evaluation and updating of human resources practice and policies. The workers collateral agreement has been passed due from March 2010 Increased Non Interest Expense. Maybank has a reputation for new product development and creativity. However, they remain vulnerable to the possibility that their innovation may weaken overtime due to homogeneous product served Maybank has a strong presence in the Malaysia. As they need to look for a portfolio of other countries in order to spread business risk. Maybank tends to invest in countries which has a nonstable economic presence such as Vietnam, Indonesia & Philipines Share price is low than other banks Have pay a huge amount of money to stakeholder

THREATS

Growing global Islamic Finance Market as a Maybank Islamic Berhad. On track to record RM1Bilion in Pre-Tax profit for 2012 Wider regional Islamic Finance Market to Singapore, Indonesia, Brunei, China, the Philippines and the Middle East Business Expansion. Maybank can explore and exploit are sized up and its growth potential assessed in the profile Strategic Restructuring. Scout for potential investments and acquisition targets, with detailed insight into the companies strategies, financial and operational performance High opportunity to expand into countries like Laos, once the banks gets the license to operate High opportunity to grow in investment banking in Hong Kong Growth in internet banking will increase the customer base Exploring international banking opportunity in Thailand, Myanmar and Cambodia. To achieve its plan to become Regional Financial services leader in 2015

World economic turmoil could affect banks expansion in the region. The current middle-east crisis is an example of the devastation The NUBE (National Union of Bank Employees), an association for Clerical & Non-Clerical staff, have made an issue when they demand 80 months compensation salaries to the bank. This will damage the bank good image if the demand is not fulfill wisely Other banks may attract employees away from Maybank as they are shown more aggressively promoting their product lines Changes in economic policies in South East Asian countries will affect the bank significantly Current macroeconomic scenario across the global affecting the bank Principal competitors such as Public Bank, CIMB Bank, Hong Leong Bank, RHB Bank, HSBC Bank and Citibank Stiff competition for loans eroding margins in the consumer financing market Maybank mortgage segmen drive to fuel competition. Public Bank who their biggest competitor Government Regulation. Merger programme for banking institutions

Maybank was incorporated on 31 May 1960 and commenced operations on 12 September 1960. With a legacy of more than 50 years, they have heritage, achievements

and milestones on the financial landscape in Malaysia and the region.In Malaysia, Maybank is the leading financial services provider in terms of reach, assets, loans and net profit, as well as in the fast-growing Islamic banking market. Maybank has received numerous international and domestic awards for product innovation and service excellence. a trade name for Malayan Banking Berhad is the largest bank and financial group in Malaysia, with significant banking operations in Singapore, Indonesia and the Philippines. The bank also has large interests in Islamic banking through Maybank Islamic Berhad and insurance via its Etiqa subsidiary. Maybank was founded by Malaysian business tycoon Khoo Teck Puat, who died in 2004. The company was led by President and CEO Amirsham Abdul Aziz for some two decades until March 2008 after which he was appointed Minister in the Prime Minister's Department in-charge of the Economic Planning Unit, a post he held until April 2009. Dato' Sri Abdul Wahid Omar was officially appointed as President & CEO of Maybank Group in May 2008. Maybank have adopted five strategic objectives that to drive their globalization strategic, regional expansion and international expansion :(A) Undisputed No. 1 Retail Financial Services Provider in Malaysia In Malaysia, Maybank aims to maintain No.1 ranking in terms of overall market share across all our core retail financing products, including mortgages, automobile financing, credit cards, unit trust financing, and individual deposits. (B) Leading ASEAN Wholesale Bank and eventually to expand into the Middle East, China and India Maybank plan to become the leading ASEAN wholesale bank by building domestic leadership while aggressively pursuing regional expansion. This will involve enhancing their corporate relationship model. Maybank also intend eventually to expand into the Middle East, China and India (C) Sustainable Champion for Insurance and Takaful Maybank seek to be the domestic insurance champion and an emerging regional player by 2015 through the growth of life insurance, general insurance and takaful business, carried under the Etiqa brand. The objective is to build a sustainable and profitable business. For general insurance and takaful, the Group will keep pace with industry growth while maintaining a healthy portfolio mix and supporting a better combined ratio compared to the market. (D) Truly Regional Organisation Maybank aspiration is to become a truly regional organisation with approximately 40% of loans and pre-tax profit derived from international operations by 2015. This will be driven key markets of Indonesia and Singapore. At the same time, Maybank is developing a presence in the Philippines, Cambodia, Vietnam and China by building scale and scope in

these

growth

markets.

(E) Leading Islamic Bank in ASEAN Maybank target is to have one-third of our domestic financing backed by Islamic financial assets by 2015. To achieve this, Islamic banking operations will take full advantage of Maybanks huge domestic branch network as well as its electronic banking platforms and the various distribution outlets of strategic partners. Maybank also aim to grow Islamic business in markets like Indonesia and Singapore as part of our focus on the ASEAN region. Islamic banking operations, meanwhile, will focus on delivering innovative and globally accepted products and services that differentiate from other Islamic financial institutions. In response to expansion network strategy Malayan Banking Bhd (Maybank) has teamed up with DiGi.Com Bhd's unit to boost over-the-counter (OTD) remittance service, which is part of the banking group's strategy to achieve RM3.37bil remittances from the Maybank Money Express service. Maybank had picked DiGi Telecommunications Sdn Bhd as the first partner for its Maybank Money Express service where customers could remit their funds to nine countries. With this collaboration, customers can remit cash over the counter to their families or foreign employees at the 23 DiGi remittance centres in Malaysia on top of Maybank's outlets, branches and money exchange booths. Maybank also have collaborated with MIEAS (Malaysian Instiute of estate agency) efforts to add value to their membership and develop a programme benefit to members. This programme gives the opportunity to forward listings to Maybanks Private Banking Clients. A standard template has been agreed upon and all members need to do is to fill out the templates with their listings and forward it to MIEAs Secretariat. The Secretariat then forwards the template to Maybank for their dissemination to their Private Banking Clients. This programme has been developed EXCLUSIVELY for MIEAs members only. Maybank and Microsoft Malaysia signed an Enterprise Subscription Agreement that will further enhance cost efficiency in the adoption of a common software toolset for Maybanks desktop applications as well as promote greater communication among employees and customers. The partnership with Microsoft provides Maybank with better negotiated pricing for Microsoft suite of desktop solutions including Microsoft Office. It also offers price protection for the more than 15,000 licences Maybank will utilise. With the Agreement, Maybank enjoys cost saving of over RM40 million over a seven year period. Maybank determines and presents market segmentation in business segments and geographical location. By business segments is organized into four (4) segments :1. Community Financial Services Consumer Banking Small, Medium Enterprise (SME) Banking Business Banking

2. Global Wholesale Banking (GWB)

Corporate Banking Malaysia Global Markets Malaysia Investment Banking (Maybank IB and Kim Eng Group)

3. Insurance, Takaful and Asset Management Insurance, takaful and asset management comprise the business of underwriting off classes of general and life insurance businesses, offshore investment life insurance business, general takaful and family businesses, asset and fund management, nominee and trustee services and custodian services

4. International Banking On the international front, the domestic Community Financial Services business is driven in-country whilst the wholesale banking for each country has a reporting line to the Global Wholesale Banking for purpose of management information reporting, the Global Wholesale Banking performance is shown separately and comprises Corporate Banking and Global Markets in Malaysia as well as the investment banking business, whilst the international banking performance comprises both the wholesale banking and Community Financial Services banking outside of Malaysia for example Singapore and Indonesia.

By Geographical Locations Maybank Group has operations in Malaysia, Singapore, Indonesia, Philippines, Papua New Guinea, Brunei DarusSalam, People republic of China, Hong Kong SAR, Vietnam, United Kingdom, United State Of America, Cambodia and Bahrain With exception of Malaysia, Singapore and Indonesia, no other individual country contributed more than 10% of the consolidated revenue before operating expenses and of total assets Operating revenue, net income, profit before taxation and zakat and non-current assets based on geographical location of customers and asset respectively

The Board is committed to maintaining high standards of corporate governance with a view to enhancing stakeholder value, increasing investor confidence, establishing customer trust and building a competitive organisation to pursue the Groups corporate vision to be a regional financial services leader by 2015. The Boards fundamental approach in this regard is to ensure that the right executive leadership, strategy and internal controls for risk management are well in place. Additionally, the Board is committed to achieving the highest standards of business integrity, ethics and professionalism across all of the Groups activities. Maybank also examines developments in corporate governance standards of leading and reputable organisations and institutions in the region and around

the world to ensure its approach in Malaysia and in countries the Group has presence is in line with the latest international best practices. The Board continuously reviews its governance model to ensure its relevance and ability to meet the challenges of the future. Risk Management is a critical pillar of the operating model, complementing the other two pillars, which are business sector and support sector. A dedicated Board-level Risk management Committee provides risk oversight of all material risks across the company. At the management level, the Executive Risk Committee, Group Operational Risk Management Committee, Asset and Liability Management Committee and Group Management Credit Committee are responsible for the management of all material risks within the group. The Groups approach to risk management is premised on the following Seven Broad Principles of Risk Management: The risk management approach is premised on the three lines of defence concept -risk taking units, risk control units and and internal audit The risk taking units are responsibility for the day-to-day management of risks inherent in their business activities while the risk control units are responsible for setting the risk management frameworks and developing tools and methodologies for the identification, measurement, monitoring, control and pricing of risks. Complementing this is Internal Audit which provides independent assurance of the effectiveness of the risk management approach. Risk Management provides risk oversight for the major risk categories including credit, market, liquidity, operational and other industry-specific risk types (e.g. insurance and stockbroking risks) Risk Management ensures that the core risk policies of the Group are consistent, sets the risk tolerance level and facilitates the implementation of an integrated riskadjusted measurement framework Risk Management is functionally and organizationally independent of business sectors and other risk taking unit within Group The Maybank Board, through the Risk Management Committee, maintains overall responsibility for the risk oversight function within the Group Risk Management ensures the execution of various risk policies and related decisions empowered by the Board