Investor Presentation - Public Bank | PBeBank.com

Introduction to Public Bank Group6• Commenced operations in 1966 with one branch• Listed in April 1967 on Bursa Malaysia Securities Berhad (then known as Kuala LumpurStock Exchange)• Geographical ContributionTotal AssetsConsistent & stable investment strategyPre-tax ProfitStrong domestic returnsAnnualised92% 91% 90% 90% 91% 92%86% 85% 91% 93% 92% 93%8% 9% 10% 10% 9% 8%2006 2007 2008 2009 2010 Q2 201114% 15% 9% 7% 8% 7%2006 2007 2008 2009 2010 Q2 2011MalaysiaOverseasMalaysiaOverseasInvestor Presentation

Performance overview – Sustainable profit growth11Net ProfitPre-tax ProfitNet Return onEquity^Earnings perShareCost IncomeRatio+20%+19%+1.0%+20%-2.7%Improved toRM1.708 bil(1H 2010:RM1.419 bil)Improved toRM2.260 bil(1H 2010:RM1.905 bil)Improved to27.1%(1H 2010:26.1%)Improved to48.8 sen(1H 2010:40.7 sen)Reduced to30.0%(1H 2010:32.7%)^ Annualised growthInvestor Presentation

1600140012001000800600400200080757065605550454035302520Performance overview – Strong net profit growth12Corresponding half-yearly net profit growth(RM’mil)+20%1,7081,00029.81,3111,166^39.134.7^1,20035.11,41940.748.8Past 5 years average growth• Half-year profit : 15.3%• EPS : 14.2%Quarterly net profit growth(RM’mil)Q2’10 Q3’10 Q4’10 Q1’11 Q2’11734 783 846 828 8801H 2007 1H 2008 1H 2009 1H 2010 1H 2011Net profit EPS (sen)^ Exclude one-off goodwill income from ING+6.4%Investor Presentation

14Performance overview – Sustainable loan and deposit growths3-year loan and deposit growths(RM’mil)+Annualised 12.9%137,610+Annualised 13.6%170,892 176,872156,544143,639127,623167,150188,297151,328Dec 2009 Dec 2010 Jun 2011Gross Loan Deposit from customers Core customer depositsDec 2009 Dec 2010 Jun 2011Gross loan growth 14.4% 13.8% 13.6%^Customer deposit growth 13.0% 3.5% 12.9%^Core customer deposit growth 14.8% 12.5% 10.7%^^ Annualised growthInvestor Presentation

Taking the lead in what we do – Clear market leadership15We continue to maintain market leadership in our domestic core businesses17.8%RESIDENTIAL PROPERTY FINANCINGCOMMERCIAL PROPERTY FINANCING33.8%No.1PASSENGER VEHICLE FINANCINGSME FINANCING25.7%PRIVATE UNIT TRUSTHOUSEHOLD FINANCING44.3%Investor Presentation

Taking the lead in what we do – High performance bank16We continue to maintain leadership as a high performance bank in MalaysiaPROFITABILITYKey performance indicatorPublicBankGroupLatestindustryaveragePre-tax return on average equity (%) 34.1 18.2No.1PRODUCTIVITYPre-tax return on average assets (%) 2.0 1.7Cost to income ratio (%) 30.0 46.7Pre-tax profit per employee (RM’000) 259 189Gross loans per employee (RM’mil) 9.6 7.3Deposits per employee (RM’mil) 10.8 9.5ASSET QUALITYGross impaired loans ratio (%)

Earnings Performance17RM’milNet interest & Islamic BankingincomeQ2 2011 Q1 2011 Change1,471.2 1,401.1 5.0%1H 2011 1H 2010 Change2,872.3 2,602.510.4%Non-interest income 406.6 371.6 9.4%778.2 690.412.7%Operating expenses 552.8 538.6 2.6%1,091.4 1,076.51.4%Operating profit 1,325.0 1,234.1 7.4%2,559.1 2,216.415.5%Loan impairment allowances 164.3 140.2 17.2%304.5 314.5-3.2%Pre-tax profit 1,162.5 1,097.9 5.9%2,260.4 1,904.618.7%Net profit 880.4 827.6 6.4%1,708.0 1,419.320.3%Income:• Strong growth in net interestand Islamic Banking income andnon-interest incomeExpenses:• Increase in operatingexpenses at a rate lower thanincrease in incomeAllowance:• Lower loan impairmentallowances in 1H 2011despite strong loan growthInvestor Presentation

Earnings Performance18RM’mil Q2 2011 Q1 2011 Change1H 2011 1H 2010 ChangeEarnings per share (sen) 25.1 23.6 6.4%48.840.719.9%Net return on equity* 27.1% 26.4% 0.7%27.1%26.1%1.0%Pre-tax return on averageassets2.0% 1.9% 0.1%2.0%1.7%0.3%Net interest margin on yieldingassets**3.3% 3.2% 0.1%3.3%3.4%-0.1%Non interest income/Total netincome21.7% 21.0% 0.7%21.3%21.0%0.3%Cost to income ratio 29.4% 30.4% 1.0%30.0%32.7%2.7%Overheads over average assets 1.0% 0.9% 0.1%1.0%1.0%-* Based on average equity after deducting proposed dividend, if any.** Excluding Negotiable Instrument of Deposits and Money Market Deposits which are on-lent to banks.Note: 1H key earning indicators, excluding EPS, have been annualised for comparison purposes.Investor Presentation

4,3003,8003,3002,8002,3001,8001,300Unbroken Profit Track Record• 44 years of unbroken profitability• Strong profit growth in past 5 years19Pre-taxprofitRM’million y-o-y growth (%)2005 2006 2007 2008* 2009 2010 1H2011 2006 2007 2008* 2009 2010 1H2011**2,059 2,416 3,004 3,179 3,321 4,086 2,260 17.3 24.3 5.8 4.5 23.0 18.7%Net profit 1,459 1,727 2,124 2,436 2,517 3,048 1,708 18.4 23.0 14.7 3.3 21.1 20.3%* Figures for 2008 exclude RM200 million one-off goodwill income from ING** Growth in comparison with corresponding period in 2010RM’mil63.352.13,0042,4162,1241,72776.972.6^87.273.34,0863,379 3,3213,1793,048 48.82,581 2,5172,4362,2601,7082006 2007 2008 2009 2010 1H2011PBT PAT EPS (sen)One-off goodwill income from ING ^ Adjusted EPS excluded one off goodwill income from INGInvestor Presentation9070503010-10

Above-industry Return on Equity (ROE)2036.934.535.1^32.134.3 34.128.71.9x ofindustry’s ROE16.219.818.614.916.518.22006 2007 2008 2009 2010 1H2011Pre-tax PBB ROEPre-tax Industry ROE^ Excluding one-off goodwill income from INGInvestor Presentation

Dividend Track Record• Paid dividends annually since 197021Dividendper share(sen)84.5%87.4%84.8%*79.3%*Share dividend per shareCash dividend per share3222Cash Dividend dividend payout ratio56.6%^Total dividend payout ratio53.2%^52.3%6075555558For the 1H2011 interim dividend:Single tier dividend of 20%2006 2007 2008 2009 2010Dividend yield 7.7% 6.8% 10.0%* 6.8%* 4.5%- Cash Dividend 7.7% 6.8% 6.2% 4.9% 4.5%- Share Dividend - - 3.8% 1.9% -^ Dividend payout based on cash dividends* Including share dividendInvestor Presentation

Pre-tax Profit by Business SegmentRM’mil1H 2011 1H 2010 ChangeRetail operations 1,292.9 995.1 29.9%Hire purchase 308.1 331.0 -6.9%Corporate lending 113.1 121.1 -6.6%Treasury & capital market operations 87.7 107.1 -18.1%Fund management 161.6 129.9 24.4%Overseas operationsOf which : Public Financial Holdings: Cambodian Public Bank149.099.240.7154.9111.033.4-3.8%-10.7%21.9%Investment banking 25.1 23.6 6.5%Others* 122.9 41.9 >100.0%• Strong double digit growth inretail operations, contributing>57% of the Group’s pre-taxprofit• Supported by favourable 10.4%rise in net interest and IslamicBanking income and 12.7%improvement in non-interestincome for the period, coupledwith stable credit charge• Pre-tax profit of overseasoperations weighed down dueto pressure from interest marginsqueeze and foreign exchangeimpact due to strengthening ofRM against USD22Total 2,260.4 1,904.6 18.7%* Others comprise mainly of domestic head office, other miscellaneous domestic segment and domestic share ofprofit after tax of equity accounted associated companies.Note: Profit contribution by segments are based on pre-tax profit including share of results of associated companies.Investor Presentation

Contribution to Revenue & Pre-tax Profit – by Business23Revenue ContributionPre-tax Profit ContributionOverseasoperationsFund 7.9%management7.2%Others2.4%Hirepurchase17.2%OverseasFund operationsmanagement 6.6%7.2%Others5.4%Hire purchase13.6%Investmentbanking1.6%Treasury andcapitalmarketoperations11.0%Corporatelending6.5%Retailoperations46.2%Investmentbanking1.1%Treasury andcapital marketoperations3.9%Corporatelending5.0%Retailoperations57.2%Based on financial results as of 30 June 2011• Retail operations and hire purchase segment continue to be the major contributor to revenueand profits of the GroupInvestor Presentation

Interest Income & Margins - Stable and sustainable growthNet Interest Income and margin%3.2 3.22.4 2.43.33.32.5 2.53.1 3.13.22.4 2.4 2.43.4 3.42.5 2.5Net Int Margin (Exclude funds from MMD and NIDs Issued)Net Int MarginRM’ mil1,2791,334 1,3671,3911,3951,4641,2601,017 1,047 1,099 1,117 1,100 1,144 1,1923.53.43.32.7 2.7 2.73.22.63.32.7• NIM for Q2 2011 remained stableas compared to the precedingquarter• Despite the interest marginsqueeze, sterling growth in netinterest and finance income dueto strong loan and depositgrowths and healthy liquidityposition of the Group. This ispredominantly driven by theGroup’s strong fundamentals andcommitment in expanding itsloan and deposit base• Net interest margin to continueto be under pressure24Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q220082009 20102011Investor Presentation

Non-Interest Income – Steady build up2555025.0%50021.2% 20.8%21.6% 21.8%21.0%21.7%450RM’ mil400350 339.6350.8378.4391.1371.6+9.4%406.620.0%15.0%30010.0%2505.0%200150Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 20110.0%Non-interest incomeNon-interest income / Total incomeInvestor Presentation

Non-Interest Income Contribution & Growth Traction26Non-Interest Income ContributionInvestmentincome9.9%Stockbrokingincome7.2%Forex /Revaluationgain14.8%Others3.6%Fee income30.4%Unit Trustmanagementincome34.1%Based on financial results as of 30 June 2011RM’ mil690.4209.6226.0Half-yearly growth12.8%17.4%15.9%778.2236.4265.348.2 55.959.8 77.2126.6 115.520.2 27.91H 2010 1H 2011Fee incomeUnit Trust incomeStockbroking incomeInvestment incomeForex / Revaluation gainOthers• Strong non-interest income in 1H 2011 was mainly contributed by the Group’s fee income, unittrust and foreign exchange businessesInvestor Presentation

Efficient Operating Overheads27Operating Costs ContributionEstablishmentCosts18.1%MarketingExpenses7.3%AdministrationExpenses6.3%Personnel Costs 745.1 715.6 4.1%Establishment Costs 197.4 195.2 1.1%Marketing Expenses 80.3 83.5 -3.7%AdministrationExpensesRM’mil1H 2011 1H 2010 Change68.6 82.2 -16.6%Total 1,091.4 1,076.5 1.4%PersonnelCosts68.3%• Personnel costs remain the main operating cost as the Group continueto invest in its people• Marginal increase in operating expenses of 1.4% vs. income growth of10.9%, reflecting improved productivityInvestor Presentation

Improving Loan Loss Allowances28Loan Impairment Allowances (including collective allowance)RM’ mil336.7314.5135.3 97.7-3.2%304.596.0• Loan impairment allowances reduced by 3.2%despite a strong annualised loan growth of13.6% during the half year.201.4216.8 208.51H 2009 1H 2010 1H 2011DomesticOverseasInvestor Presentation

Robust Financial PositionTotal assets 235.4 226.3 4.0%Gross loans and advancesOf which:Domestic loans and advancesOverseas loans and advancesDeposits from customersOf which:RM’ bilDomestic core customer depositsJun 2011 Dec 2010 Change167.2154.213.0188.3137.9156.5143.812.7176.9129.46.8%7.2%1.6%6.5%6.5%Shareholders’ funds 13.8 13.0 6.1%Net assets per share (RM) 3.95 3.72 6.2%Net loans to deposits (LD) ratio (%) 87.3 87.1 0.2%Assets:• Assets expansion driven by strongloan and deposit growthLoan:• Domestic loan growth is stronger at7.2% (annualised 14.5%) for 1H 2011• Overseas loan see a marginalincrease of only 1.6% partly due thenegative impact of the forextranslation of overseas loansresulting from strengthening of RMagainst USDDeposit:• Deposit growth of 6.5% (annualised12.9%), supported by the strongdomestic core customer depositgrowth of 6.5% (annualised 13.0%).Equity:• Shareholders’ fund increased toRM13.8 billion29Investor Presentation

Strong Liquidity With Healthy Loan/Deposit RatioNet Loan Deposit Ratio%78.8 78.379.287.1 87.3LD ratio• Net loan deposit ratio remained stable and healthy at87.3%• Loan growth continues to be supported through theGroup’s retail and hire purchase segment whilst retaildeposits remain the main contributor to the depositgrowth of the Group with >66% contribution302007 2008 2009 2010 1H 2011Gross Loan Composition by SegmentRM’ bil2009 2010 1H 201198.4Deposit Composition by SegmentRM’ bil125.82009 2010 1H 201135.520.110.91.7 0.646.12.511.02.3 0.6RetailHirepurchaseCorporateHongKongCambodiaOthersRetail Treasury InvbankingHong Kong CambodiaOthersInvestor Presentation

Consistently Above-industry Loan Growth31Loan Growth vs IndustryGross Loans and Domestic Loan Market Share%RM’ mil20.219.019.017.0 16.513.014.08.98.115.613.813.314.514.613.614.4%101,41514.8%120,66915.9%137,61016.3% 16.3%156,544167,150Gross Loan CAGR (2007 – 1H 2011) –16.1%2007 2008 2009 2010 1H 20112007 2008 2009 2010 1H 2011Group Loan GrowthDomestic Industry AverageDomestic Loan GrowthGross Loans OutstandingDomestic Loans Market Share (%)Note: Industry average growth is based on annualised loan growth as of June 2011Growth rate for June 2011 represent annualised growth for the periodInvestor Presentation

2.52.01.51.00.50.0180.00160.00140.00120.00100.0080.0060.0040.0020.00-Asset Quality Remained Strong32Improving gross impaired loans ratios with high loan loss reserves%119.5159.7120.3^143.5169.7• Despite more stringent criteria onclassification of impaired loans due to FRS139 adoption with effect from 2010, thegross impaired loans ratio remained lowat 1.0% with an increased loan lossreserve of 169.7%1.41.4^1.1 1.01.0 1.0 0.9 0.8• Based on old GP3 classification of 3months NPL, NPL ratio would haveimproved further to 0.8% from 0.9% as atDecember 20102007 2008 2009 2010 Jun 2011Gross impaired loan ratio - FRS139Gross impaired loan ratio - Old GP3Loan loss coverage^ Restated due to the adoption of FRS 139Investor Presentation

Asset Quality Remained StrongGross Impaired Loans by SegmentRM’ mil1,2811,251^1,109Stable domestic impairedloans trend despite growingloan baseOverseas impaired loansshowing improvementsince 2010Gross Impaired Loans & Gross Impaired Loans Ratio byKey SectorsSMEHousing LoansHire PurchaseRM’ mil2009 (%) 2010 (%) Jun 2011 (%)1.8^ 1.81.1^1.11.31.00.5 0.5 0.533500455^467455400^371171193141233128130131106^113139605320^ 137199145 178HirepurchaseRetail Corporate Hong Kong Cambodia Others2009^ 2010 Jun 2011Housing LoansHire Purchase(includingoverseas)SME2009^ 2010 Jun 2011^ Restated due to the adoption of FRS 139Investor Presentation

Sustaining Strong Asset Quality34• Focus on lower risk customer segments− Traditional urban/ suburban mortgages− Passenger vehicle hire purchase− Middle market business enterprises• Sound credit appraisal and approval process• Strong credit risk culture• Proactive loan restructuring and reschedulingInvestor Presentation

Healthy Domestic Deposit Growth in Support of LiquidityDeposit Growth vs Industry%28.3%28.0Core Deposit Growth14.815.0Above-industrygrowth in domesticcore deposits3520.012.712.513.017.520.911.513.014.812.910.711.911.79.37.312.37.36.7Customer Deposit CAGR(2007 – 1H 2011) – 12.2%4.33.52007 2008 2009 2010 1H 2011Group Deposit GrowthDomestic Deposit GrowthDomestic Industry Average2009 2010 1H 2011Group Core Deposit GrowthDomestic Core Deposit GrowthDomestic Industry AverageNote: Industry average growth is based on annualised loan growth as of June2011Growth rate for 1H 2011 represent annualised growth for the periodInvestor Presentation

Diversified Source of Customer Deposit36Type of DepositRM’ mil16.3% 16.3%Source of Core DepositRM’ milCore deposit mainly comprise offixed deposits, with steadyimproved contributions fromsaving and current accounts15.4%Customerdeposits127,623Customerdeposits143,639Customerdeposits151,32822,25919,57625,47020,44126,67721,31942,08932,769 36,75485,78897,728 103,3322009 2010 Jun 2011Core depositWholesale deposit (NID & MMD)2009 2010 Jun 2011Fixed deposit Saving accounts Current accountsDomestic core deposits market shareInvestor Presentation

75.0%65.0%55.0%45.0%35.0%25.0%15.0%5.0%11.010.09.08.07.06.05.04.03.0Continued High Productivity & Cost Efficiency37Productivity and Cost EfficiencyRM’ milImproved productivityacross the variousindicators10.8PBT per employeeRM’ 000259^8.89.49.910.29.09.6210197* 1932358.07.57.133.1% 32.3%* 32.6%30.7% 30.0%2007 2008 2009 2010 1H 2011Cost income ratio (%)Gross loan per employeeDeposit per employee* Exclude one-off goodwill income from INGInvestor Presentation2007 2008 2009 2010 1H 2011PBT per employee (RM'000)* Exclude one-off goodwill income from INGGross loan per employee(RM mil)Deposit per employee(RM mil)PBT per employee(RM’000)1H 2011 2010IndustryAverage9.6 9.0 7.310.8 10.2 9.5259^ 235 189Cost Income Ratio (%) 30.0 30.7 46.7^ Annualised

Retail Operations38RM’mil1H 2011 1H 2010 ChangeNet Income 2,051.2 1,754.3 16.9%Operating Expenses (640.3) (612.2) 4.6%Allowances for impairment ofloans and other assets(118.0) (147.0) -19.7%Profit by segment 1,292.9 995.1 29.9%Gross Loans and Advances(RM’ bil)Jun 2011 Dec 2010 Change98.4 91.3 7.7%• Improved profit and businessperformance of the retailoperations segment were mainlydriven by strong growth in thelending and deposit-takingbusinesses coupled with highersales volume from the retailfinancial services• Asset quality further improvedwith gross impaired loans ratiodeclining to 1.1%Customer Deposits (RM’ bil) 125.8 119.1 5.6%Gross Impaired Loans (RM’ bil) 1.1 1.3 -13.5%Gross Impaired Loans Ratio 1.1% 1.4% -0.3%Investor Presentation

Retail Operations39Gross loan & financing in Domestic OperationsRM’ bil34.941.444.924.730.933.7Demand for retail loansremain resilientOf which, financingto Domestic SMEs22.526.028.36.47.37.7Residential properties Commercial properties Personal loans SME2009 2010 1H 2011Key Drivers in Domestic Retail Banking & Financing OperationsResidential properties financing:• Attractive loan package under the HOME and MORE plans• Strong sales force and marketing networkSME:• Comprehensive SWIFT loan plans and full range oftrade financing facilities offered• Support government initiated financing schemesPersonal loans:• Mainly driven by Public Islamic Bank with its Bai’-Al-Einah (BAE) Personal Financing-i offered to staff ofgovernment agencies, quasi governmentcorporations, institutions of higher learning and GLCsInvestor Presentation

Retail Operations40Market Share in Residential PropertiesRemained market leader in the residential propertyfinancingRM’ bil17.8%17.4%16.6%No.1Market Share in Commercial PropertiesRemained market leader in the commercial propertyfinancingRM’ bil33.2%33.9% 33.8%No.114.2%15.3%30.8%31.9%24.729.334.941.444.916.921.224.730.9 33.72007 2008 2009 2010 1H 2011Residential properties loans Market share (%)2007 2008 2009 2010 1H 2011Commercial properties loans Market share (%)Investor Presentation

Hire Purchase41RM’mil1H 2011 1H 2010 ChangeNet Income 452.9 456.8 -0.9%Operating Expenses (80.0) (72.7) 10.0%Allowances for impairmentof loans and other assets(64.8) (53.1) 22.0%Profit by segment 308.1 331.0 -6.9%Gross Loans and Advances(RM’ bil)Gross Impaired Loans(RM’ bil)Jun 2011 Dec 2010 Change35.5 33.6 5.6%0.2 0.2 12.9%Gross Impaired Loans Ratio 0.5% 0.5% -• The drop in net income from hirepurchase was mainly due to escalatedfunding costs as a result of the variousOPR hikes since March 2010• Asset quality remained stable asreflected by the stable impaired loanratio at 0.5%• However, credit charge to P&Lincreased mainly due to highercollective allowance (1.5%) set asidein line with the higher loan growthduring the periodInvestor Presentation

Hire Purchase42HP Financing in Domestic OperationsRM’ bilSteady growth in HPfinancing35.5Market Share in Passenger Vehicle FinancingRemained market leader in the passenger vehiclefinancing25.7%25.5%No.133.624.6%24.927.629.923.3%23.9%2007 2008 2009 2010 1H 2011Gross HP financingKey Drivers in Domestic Hire Purchase Financing• Improvement in overall vehicle sales• Better customer service delivery through the 27 Hire Purchasecentres in key locations nationwide and continuousimprovement in credit processing turnaround time• Experienced and dedicated HP centre staff force2007 2008 2009 2010 Jun 2011Market shareInvestor Presentation

Wealth Management43Net Asset Value of Funds under managementRM’ bilContinued increase in totalNAV, which largely comprisedof Equity Funds35.5828.398.7740.6010.3044.3711.19Market Share in Private Unit Trust IndustryPublic Mutual continues to maintainits market leadership42.5%43.5%44.3%No.15.3323.3223.067.1926.8130.3033.1840.0%39.0%16.132007 2008 2009 2010 1H 20112007 2008 2009 2010 1H 2011Market ShareNet Asset Value - Equity FundsNet Asset Value - Other FundsInvestor Presentation

Wealth Management44Bancassurance Business PerformanceRM’ milSales of Bancassurance products as measuredby Annual Premium Equivalent65.120.764.510.9• Continue to focus on building infrastructuresand business volumes• Driven by single premium investment linkedinsurance, regular premium unit linkedinsurance and credit-related insuranceproduct• Launched a total of 6 new products duringthe half year.• Continued to build its bancassurance salesforce2009 2010 1H201121.32.518.844.453.6Bancassurance SalesExecutivesPersonal FinancialExecutives265 250 249213 272 239Total 478 522 4881H 2009 1H 2010 1H 2011DomesticOverseasInvestor Presentation

Capital ManagementRM’milTier I Capital 15,033.7 14,118.5 6.5%Tier II Capital 5,399.4 5,266.8 2.5%Deduct: Inv in subs/asso andother deductionsGroup*Jun 2011 Dec 2010 Change Jun 2011 Dec 2010 Change(48.1) (48.4) -0.6%Total Capital Base 20,385.0 19,336.9 5.4%Risk-Weighted Assets 154,267.2 141,096.5 9.3%RWCR (%) 13.2 13.7 -0.5%Tier-I Capital Ratio (%) 9.7 10.0 -0.3%Bank*15,243.4 14,385.2 6.0%5,047.6 4,921.3 2.6%(3,834.4) (3,834.7) 0.0%16,456.6 15,471.8 6.4%127,932.6 116,319.3 10.0%12.9 13.3 -0.4%11.9 12.4 -0.5%45* After deducting interim dividends declared subsequent to end of year/periodEnhancement to Group’s Core Equity Capital to be achieved by:• Strong profit generation capacity• Strong asset quality• Continuous enhancement of efficient capital usage, in particular emphasis on less capitalintensivefee based and non-interest income businessInvestor Presentation

Promising Prospect for 201146Continue in Achieving Organic Growth While Sustaining Our Premier Status in the Local BankingIndustryCore business focus: Consumer Lending & Lending to SMEsLending Business• Consumer lending to focus on purchases of propertiesand passenger vehicles• Penetrate mid-market SMEs & micro enterprises inencourage sectors• Expanding credit card financing & corporate lendingDeposit-Taking Business• Securing higher retail and low cost deposits• Sustaining existing pool of depositsMaintain earning growthmomentum• Continued quality loans growth atabove industry growth rate• Further expand depositor base• Further improve productivity andoperational efficiency• Continued organic expansion ofoverseas businessBuild on existing strength• Strong brand & market position• Healthy capital and asset quality• Proactive capital management toensure healthy level of capitalwhile maintaining high returns toshareholdersPrudence• Continue to remain prudent anduphold its strong corporategovernance and risk managementpolicies• Sustainable low impaired loansleveraging on PBB’s prudentlending policy• Maintain strong liquidityInvestor Presentation

Market Capitalisation and Analysts’ Poll47Strong market capitalisation6013.0213.44145011.0011.3012408.85103020103.645.6618.77.1024.36.5522.27.7526.938.831.239.945.9 47.5864211.002002 2003 2004 2005 2006 2007 2008 2009 2010 Jul-110Market capitalisation (RM'bil)Share price (Local) (RM)Investor Presentation

Market Capitalisation and Analysts’ PollResilient share price performance48Kuala Lumpur Composite Index Public Bank (Local) Public Bank (Foreign)FBM KLCI160014001200Share price (RM)14.0012.0010.0010008.008006004002006.004.002.0000.00Investor Presentation

Market Capitalisation and Analysts’ Poll)49• Superior investment returnsIllustration on investment returns – assume held until 31 December 2010Shares acquiredsinceTotal returns(capital appreciation^ + dividends)Compounded annual rateof returnShort term - 1 year 1 January 2010 +21.3%Medium term - 5 years 1 January 2006 +159.5%Long term - since listing 1967 +4,973.9%+21.3%+24.3%+19.7%^Capital appreciation is calculated based on the PBB local share value at closing price as of 31/12/2010 less initialinvestment cost at the illustrated acquisition dates, assuming shareholders had subscribed for all rights issues todateand had not sold any Public Bank shares.• Other share information2006 2007 2008 2009 2010Price to earnings multiple (times)14.917.411.515.414.9Price to book multiple (times)2.93.93.13.53.5Investor Presentation

Market Capitalisation and Analysts’ Poll50• Average daily volume/ value traded:Average Daily Volume(million)Average Daily Value(RM’million)2010 4.3 52.0YTD 29 July 2011 3.9 51.3• Consensus net profit estimates (RM’mil):2011 2012 20133,419.9 3,871.1 4,405.8• Poll of analysts Buy/ Hold/ Sell recommendations on PBB Shares as at 29 July 2011PBBBuy15Hold16Sell1No. of Analysts32Source: Bloomberg, Reuters and Analyst ReportsInvestor Presentation

Summary51• Profitable retail franchise−−−Domestic and Indo-China marketsGrowing market shareAffluent and quality retail customer base for lending and wealth managementbusiness• Unbroken profit track record and sustained strong asset quality• Strong brand• Proactive capital management• Large market capitalisation−High liquidity and high free-float• Proven management record in execution• Strong working commitment and excellent career environmentInvestor Presentation

52Investor RelationsContactMr Leong Kwok NyemChief Operating Officer+(603) 2176 6270leongkn@publicbank.com.myMs Chang Siew YenChief Financial Officer+(603) 2176 7460changsiewyen@publicbank.com.myInvestor Presentation