Contents :

The headline KPIs represent the main corporate targets set by the Company for the period and should not be constituted as being forecasts. In this respect please note the following;

These headline KPIs are targets or aspirations set by the Company as a transparent performance management practice. These headlines shall not be construed as either forecasts, projections or estimates of the Company or representations of any future performance, occurrence or matter as the headlines are merely a set of targets/aspirations of future performance aligned to the Company's strategy.

Financial Year 2006 Headline KPIs

1. After Tax Return on Equity (ROE) - 8.9% (as compared to ROE of 8.0 % in FY 2005)
2. After Tax Return on Assets (ROA) - 0.9%(as compared to ROA of 0.7 % in FY 2005)
3. Net NPL Ratio - 10.6% (as compared to ratio of 14.2% in FY 2005)
4. Earnings Per Share (EPS) - 25.0 Sen (as compared to EPS of 20.0 Sen in FY 2005)

Financial Year 2007 Headline KPIs

1. After Tax Return on Equity (ROE) - 9.8%
2. After Tax Return on Assets (ROA) - 1.0%
3. Net NPL Ratio - 8.0%
4. Earnings Per Share (EPS) - 28.0 Sen

The KPIs have been developed based on the Group’s strategic plan and based on the assumption that there will be no significant changes in the prevailing economic and political conditions, present legislation and government regulations and on the assumption that the business of the Group will continue to grow as projected and the amount of non-performing loans, provision for loan loss and financing and recoveries will not vary significantly from the amount projected.

The Group is very active in undertaking various merger and acquisition and rationalisation exercises to strengthen the Group to be in line with Bank Negara Malaysia (BNM)’s Financial Sector Master Plan guidelines and to enhance shareholders’ value.

The merger and acquisition and rationalisation exercises undertaken todate include the merger of the finance company business of Affin-ACF Finance Berhad with the commercial banking business of Affin Bank Berhad, the acquisition of Malaysia International Shipping Corporation (MISC)’s 36.84% interest in Affin Merchant Bank Berhad (AMBB) making it a wholly owned subsidiary of the Group, the joint venture with National Mutual International Pty Ltd, a wholly owned subsidiary of AXA Asia Pacific Limited to acquire the life insurance business of Tahan Insurance Malaysia Berhad and the proposed formation of a full fledged investment bank in accordance to the guidelines on investment banks jointly issued by BNM and the Securities Commission.

The KPIs will facilitate towards a more focused management of business of AHB Group and paves the way towards increasing shareholders’ value. Headline KPIs are also a powerful tool to communicate to all levels of employees in the Group, by providing a common reference point to chart the progress of the Group.