BUILDING ASEAN TOGETHER Shareholder Returns 13.8% 11.75% Dividend per Share 57 sen Return on Equity Common Equity Tier 1 Capital Ratio Dividend Yield 6.2% Building ASEAN Together Maybank has been a regional bank since 1960, with the incorporation of our operations in Malaysia and opening of branches in Singapore and Brunei in that same year. Our roots in ASEAN are deep, being a Group with presence in all 10 ASEAN countries. We have been able to gain a place in ASEAN communities because we believe in embracing diversity & inclusiveness and in providing financial services with a humanising touch. We have financed our customers’ first home, helped start their small businesses, and partnered with them to expand their companies across the region. There are many more experiences that we have shared, and that we hope to be part of in the years to come. We are passionate about being at the heart of the communities we serve to prepare them for the future and bridge them to opportunities and a better way of life. In this report, we present our journey of humanising OP financial services and the aspirations we have for EN ASEAN and beyond. Annual General Meeting of th Malayan Banking Berhad 55 Kuala Lumpur Convention Centre, Tuesday Grand Ballroom, Level 3, Refer to pages 235 to 238 for Annual 7 April 2015 General Meeting Information and Kuala Lumpur City Centre, Financial Calendar. 50088 Kuala Lumpur, Malaysia at 10.00 a.m. Maybank Overview 4 CONTENTS Highlights of 2014 6 8 32 To contact us, please refer to page 231 for Corporate Information and page 232 for Group Directory. Empowering Regional Enriching People’s Lives Ambitions This annual report is available on the web at www.maybank.com/ar2014 MG ESSA E TO STRatEGY & SHAREHOLDERS SUSTAINABILITY Chairman's Statement 12 Strategy 36 Group President & CEO’s Statement 14 The ASEAN Opportunities 39 Key Performance Indicators 42 Core Values & The Maybank Brand 44 Code of Ethics & Conduct 45 ORganiSation Sustainability at Maybank 46 OVERVIEW Corporate Profile & Global Network 18 LEADERSHIP & History, Innovation & Leadership 20 Strategic Business Units 24 PEOPLE Group Corporate Structure 27 Corporate book Group Organisation Structure 28 Board of Directors 48 Financial Statements book Group Service Quality Management 30 Board of Directors’ Profile 50 Group Executive Committee 57 The Maybank Annual Report 2014 consists of two Group Shariah Committee 64 books: Corporate book and Financial Statements Group Human Capital 66 book. How to get Feedback We need your feedback to the most out make sure we are covering of our annual Tells you where you can find Tells you where you can find Enjoy interactive the things that matter to more information in the more information online at Augmented Reality content you. For the feedback form, report Annual Report www.maybank.com by scanning the AR icon scan the QR Code with your smartphone. You can also email to [email protected] Scan the AR icon in 6 easy steps Search for Maybank AR Click the app and install. Once installed, click open Click the start button from Look for the “AR Icon” in the You may click on the App from Apple App Store (Please check your device to launch the Augmented the Maybank AR App to book and scan it with AR interactive button to or Google Play with your compatibility before Reality (AR) App. launch the AR camera camera to enjoy interactive explore additional content. smartphone installing) AR content. 76 162 OTHER INFORMATION Analysis of Shareholdings 224 Classification of Shareholders 226 Changes in Share Capital 226 Properties Owned by Maybank Group 229 List of Top 10 Properties Owned by Pioneering Innovations Working with Communities Maybank Group 230 Corporate Information 231 Group Directory 232 PERFORMANCE CORPORATE GOVERNANCE & REVIEW ACCOUNTABILITY AGM INFORMATION Economic & Industry Review 80 Statement on Corporate Governance 166 Group Financial Review 86 Statement on Risk Management and Notice of the 55th Annual Capital Management 94 Internal Control 181 General Meeting 235 Financial Performance 96 Audit Committee Report 184 Statement Accompanying Notice of Investor Information 103 Risk Management and Compliance 188 the 55th Annual General Meeting 237 Group Shariah Committee Report 196 Financial Calendar 238 Corporate Responsibility 198 BUSINEss SECTOR • Form of Proxy REVIEW MILESTONES & Community Financial Services 116 ACHIEVEMENTS Global Banking 122 Overseas Operations Maybank in the News 206 - International 134 Event Highlights 2014 212 - Singapore 140 Awards & Recognition 220 - Indonesia 142 Insurance & Takaful 144 Group Islamic Banking 150 Group Technology 156 Group Operations 160 Annual Report 2014 Maybank Overview We are a leading ASEAN bank Our future is ASEAN Maybank is Malaysia’s largest With total assets of RM640 billion and market We are positive about the future of ASEAN with the advent of the capitalisation of RM85.5 billion, it ranks fourth ASEAN Economic Community to officially begin in 2015. financial services group with a by assets among banks in ASEAN and is among growing presence in the the top 120 banks in the world, including the Our presence in all 10 ASEAN countries places us in a favourable ASEAN region. third largest Islamic bank globally. Net operating position to support and benefit from the ASEAN growth income for FY2014 amounted to RM18.5 billion. opportunities as we deliver innovative solutions to our clients. Corporate Profile & Global Network, pg. 18 Doing business in ASEAN is our strength as we have the heritage, talent and connections to capture market opportunities. Our Values We live our T.I.G.E.R. values of Teamwork, Integrity, Growth, Efficiency and Relationships and The ASEAN Opportunities, pg. 39 adhere to a strict Code of Ethics. Strategic objectives Our strategic objectives for the 5-year period to 2015: Undisputed No.1 Retail Financial Our Values, pg. 44; Code of Ethics, pg. 45 Services Provider in Malaysia by 2015 Vision, Mission and Focus Leading ASEAN Wholesale Bank, eventually expanding to Middle East, China & India OUR OUR OUR VISION MISSION FOCUS Undisputed Insurance & Takaful Leader in Malaysia & Emerging Regional Player is to become a to humanise remains on regional leader in financial services delivering Truly regional organisation, with financial services drives us and underpins sustainable ~40% of pre-tax profit derived from through the realisation our desire to strengthen stakeholder value international operations by 2015 of our true potential our relationships with the by leveraging on our high across key Home communities we serve performance culture and Markets and beyond revised Group Structure Global leader in Islamic Finance Strategy, pg. 37 Strategy, pg. 38 Market positioning Loans Deposits Assets (RM billion) Loans Deposits Assets (USD billion) 333 303 640 Maybank is the leading 239 232 440 211 414 409 185 banking group in Malaysia 183 176 346 158 150 282 and ranks fourth in ASEAN 277 265 118 126 117 245 in terms of assets, loans 219 177 157 81 76 142 132 and deposits and targets to 107 remain as a top 5 player in the HL Bank RHB Cap Public CIMB Maybank CIMB Maybank UOB OCBC DBS regional market. Source : Bloomberg No.1 in Malaysia 4th in ASEAN 4 Annual Report 2014 Maybank Overview Diverse range of services • Established in 1960 • Presence in 20 countries • Head office in Kuala including in 10 ASEAN Maybank provides a comprehensive range of financial services Lumpur, Malaysia countries under three key business pillars: Community Financial Services (including consumer banking, SME and business banking), Global Banking (including corporate banking, investment banking, global markets and transaction banking), and Insurance & Takaful, • Listed on Bursa Malaysia • Over 47,000 employees complemented by its international business operations. Islamic in 1962 and is the largest serving 22 million financial services are also offered across all the business units. company on the exchange customers Business Pillars Business Units Developments in 2014 Share of Group PBT Business Review Community Financial Includes: • Established Regional Centres of Excellence Services • Consumer for Cards, Wealth Management and Retail • Retail SME SME. 38.3% pg. 116 • Business Banking • Launched private and premier wealth in (mid-sized corporates and SMEs) selected markets. Global Banking Includes: • Enhanced transaction banking platform with • Corporate Banking Dagang NeXchange (DNeX) alliance. • Investment Banking • Improved capabilities for Equity Capital (Maybank Kim Eng) Markets and Debt Capital Markets. 32.3% pg. 122 • Global Markets • Expanded regional asset management • Transaction Banking business. • Asset Management International Includes operations in: • Standardised private and premier wealth • Singapore branding across the region. slamic Finance slamic Finance I • Indonesia • Established new regional organisation pg. 134 • Greater China structure to drive regionalisation agenda. 21.3% erage model utilised to distribute erage • Philippines • Awarded banking license in Myanmar. Islamic products across the group across Islamic products lev and other overseas markets Insurance and Takaful Conventional Insurance: • Etiqa introduced its life insurance business • Life Insurance in Singapore. • General Insurance pg. 150 pg. 144 Takaful (Islamic insurance): 8.1% • Family • General Geographical footprint International contribution Our home markets are Malaysia, Singapore and Indonesia. The contribution of PBT and composition of loans from overseas are 28.8% and 40.3% respectively. We have presence in 10 ASEAN countries with a combined branch network of 1,185 offices in ASEAN. We also have Profit before Tax Gross Loans presence in the international financial centres of Hong Kong, 11.4% 9.4% Shanghai, London, New York and Bahrain with associates in 7.6% Pakistan (MCB Bank with 1,242 branches) and Vietnam (An 3.0% Binh Bank with 145 branches). 71.2% 59.7% 14.4% Strategic Business Unit, pg. 24 RM9.1 bil 23.3% RM410.5 bil Overseas: Overseas: 28.8% 40.3% Malaysia Indonesia Singapore Others 5 Annual Report 2014 Highlights of 2014 billion RM6.72 sen Net Profit 57.0 Net profit reached a new high of RM6.72 billion and met the ROE Dividend per Share guidance of 13.0%-14.0%.