morgan stanley asia pacific banks december data dashboard

December 14, 2009

Asia Pacific Banks December– Data Dashboard

▲ India SoE banks: Offer value, return expansion and strong earnings momentum. Capital flows reduce asset quality concerns. Prefer SBI, Least Axis.

▲ Thailand: We see value, clean balance sheets, growth & expanding returns from a dual track 2010 recovery. Prefer BBL, Least KTB.

▲ Indonesia: High growth, high return & declining risk/ sovereign upgrade. Prefer BRI, Least BCA.

▲ Korea: Key factors for FY10 1) regulatory changes, 2) asset & liability spread management, and 3) credit cost management/ recoveries. Prefer SFG, Least HFG.

▲ China: Capital to be a key near-term differentiator. The large banks have strong Tier-1 and capital generation ability. Prefer CCB & ICBC, Least Ningbo.

- Philippines: Resilient remittances, improving consumption and reasonable value. Liquidity to find this overlooked market. Prefer MBT, Least BDO.

- Pakistan: Macro looks to have bottomed and risk appetite returns. High return, high growth.

- Malaysia: Stimulus cushioned macro. NIM & credit stable. Defensive. Prefer CIMB, Least MAY.

- Hong Kong: Low HIBOR and China liquidity mitigates weak growth and credit. Prefer DSF, Least BEA

▼ Australia: More positive on the outlook, but valuations imply optimistic expectations. Prefer NAB, Least CBA.

▼ Taiwan: Better NIM & credit discounted. Any cross- trait activity is unlikely to deliver much fundamental change. Prefer Fubon, Least First Financial.

▼ Singapore: We see no value, no growth, no domestic story. Prefer UOB, Least DBS.

Indian SoE banks remain the top pick with Thailand & Indonesia: we continue to prefer strong domestic stories with high growth and high returns underpinned by real revenue growth. Higher interest rates will generally be a positive for earnings but are unlikely to manifest until the second half of 2010 at the earliest. Moreover, rate hikes are likely to be small and managed.

Recent Reports

Title Date

Asia Pacific Banks: Higher Rates Better for Who?

Nov 3, 2009

Matthew S Wilson, CFA / Samantha L Horton / Anil Agarwal

Asia/Pacific Financials: Stocks We Would Buy

Aug 14, 2009

Anil Agarwal / Matthew S Wilson, CFA Asia Pacific Banks: Dissecting Regional Returns

Jul 21, 2009

Matthew S Wilson, CFA / Anil Agarwal Asia/Pacific Banks: We Prefer Mega Cap China to Large Cap India

Jun 15, 2009

Anil Agarwal / Minyan Liu / Matthew S Wilson, CFA

Asia Pacific Banks: Stocks to Buy if Economic Recovery Is Sustainable

May 5, 2009

Anil Agarwal / Matthew S Wilson, CFA YTD MSCI bank index performance vs. MSCI local market index …

Pakistan

Thailand

India

China

Taiwan

Indonesia

Korea

Malaysia

Hong Kong

Singapore

Philippines

Australia

(30%)

(20%)

(10%)

0%

10%

20%

30%

40%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%ABSOLUTE PERFORMANCE

REL

ATI

VE

PER

FOR

MA

NC

E

Source: Factset, Morgan Stanley Research

Morgan Stanley does and seeks to do business with companies covered in Morgan Stanley Research. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of Morgan Stanley Research. Investors should consider Morgan Stanley Research as only a single factor in making their investment decision. For analyst certification and other important disclosures, refer to the Disclosure Section, located at the end of this report. += Analysts employed by non-U.S. affiliates are not registered with FINRA, may not be associated persons of the member and may not be subject to NASD/NYSE restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

Morgan Stanley Asia (Singapore) Pte.+

Matthew S Wilson, CFA [email protected] +65 6834 6746

Morgan Stanley Asia Limited+ Anil Agarwal [email protected] +852 2848 5842

M O R G A N S T A N L E Y R E S E A R C H A S I A / P A C I F I C

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M O R G A N S T A N L E Y R E S E A R C H

December 14, 2009 Asia Pacific Banks

Share Target Avg daily Mkt cap EPS Div yield Mkt cap/Rating price high low price trade US$m US$bn 2009E 2010E 2009E 2010E 3 yr cagr 2009E 2010E 2009E 2010E 2009E 2010E 2009E 2010E 2009E 2010E 2009E deposits

Regional BanksHSBC E/W 90.15 98 30.56 87.00 320.1 202 0.49 0.59 23.6 19.5 (0%) 6.86 7.31 1.7 1.6 9% 9% 0.3% 0.4% 2.65 2.78 3.1% 16.9%Standard Chartered E/W 188.20 218.80 66.10 194.00 19.0 46 1.77 1.77 13.6 13.6 2% 11.81 12.70 2.0 1.9 17% 16% 0.8% 0.8% 5.29 5.29 2.8% 18.4%

AustraliaANZ Bank n.a 21.30 25.25 11.83 ++ 161.0 51 1.48 1.42 14.4 15.0 6% 12.13 12.98 1.8 1.6 13% 11% 0.7% 0.7% 1.02 1.02 4.8% 24.5%Bank of Queensland U/W 11.03 13.49 6.23 11.10 5.8 2 0.99 0.96 11.1 11.5 6% 8.51 9.81 1.3 1.1 12% 11% 0.6% 0.6% 0.52 0.6 4.7% 10.4%Commonwealth Bk Aust U/W 52.50 56.24 24.03 48.70 188.8 80 2.92 3.33 18.0 15.8 3% 19.06 20.28 2.8 2.6 17% 17% 0.7% 0.8% 2.28 2.62 4.3% 29.7%Nat Aust Bank E/W 28.21 32.37 15.85 29.50 172.1 56 1.97 1.81 14.3 15.6 2% 15.38 15.77 1.8 1.8 13% 12% 0.6% 0.6% 1.46 1.46 5.2% 23.8%Westpac Banking E/W 23.56 27.57 14.40 24.30 170.8 66 1.58 1.53 14.9 15.4 (0%) 11.45 11.74 2.1 2.0 24% 13% 0.8% 0.8% 1.16 1.22 4.9% 27.3%Bendigo Bank E/W 9.00 12.16 5.73 7.80 8.0 3 0.56 0.67 16.1 13.4 (3%) 9.49 9.39 0.9 1.0 5% 8% 0.3% 0.5% 0.43 0.49 4.8% 8.7%Macquarie O/W 47.89 58.80 15.00 63.80 66.9 15 3.09 2.99 15.5 16.0 (8%) 30.06 31.14 1.6 1.5 10% 12% 0.6% 0.7% 1.85 1.74 3.9% 75.6%Total/ Country average 773.5 273 15.4 15.5 2% 2.1 2.0 16% 13% 0.7% 0.7% 4.7% 30.4%Hong Kong Hang Seng Bank E/W 113.70 127.00 67.00 120.00 41.1 28 7.04 7.31 16.2 15.6 5% 26.04 26.38 4.4 4.3 29% 28% 1.7% 1.7% 6.50 7.00 5.7% 35.0%Bank of East Asia U/W 32.85 36.50 11.09 22.00 23.6 7 1.12 1.20 29.2 27.3 319% 17.97 18.58 1.8 1.8 6% 7% 0.5% 0.5% 0.55 0.59 1.7% 14.8%Dah Sing Financial O/W 44.00 50.00 15.00 55.00 1.6 1 2.67 4.14 16.5 10.6 135% 42.34 46.25 1.0 1.0 7% 10% 0.6% 0.8% 0.67 1.45 1.5% 12.0%Wing Hang Bank E/W 79.70 86.50 32.90 75.00 3.8 3 4.16 4.80 19.1 16.6 15% 38.39 40.81 2.1 2.0 12% 13% 0.9% 0.9% 2.08 2.40 2.6% 18.3%BOC Hong Kong E/W 17.72 19.88 6.30 17.00 47.2 24 1.23 1.60 14.4 11.1 85% 8.81 9.38 2.0 1.9 16% 18% 1.1% 1.3% 0.80 1.04 4.5% 18.7%ICBC (Asia) O/W 17.54 20.20 6.51 23.00 2.7 3 1.38 1.49 12.7 11.7 37% 12.01 12.76 1.5 1.4 13% 12% 0.9% 0.8% 0.69 0.75 3.9% 11.4%Country average 120.1 67 15.3 13.2 48% 3.0 2.9 21% 22% 1.3% 1.4% 4.8% 25.3%SingaporeDBS U/W 14.78 15.32 6.42 12.50 74.1 24 0.87 0.91 16.9 16.2 4% 9.38 9.72 1.6 1.5 12% 10% 0.8% 0.8% 0.56 0.58 3.8% 18.1%OCBC U/W 8.65 8.74 3.95 7.20 34.8 19 0.58 0.63 15.0 13.7 9% 5.08 5.43 1.7 1.6 13% 12% 1.0% 1.0% 0.28 0.28 3.2% 25.5%UOB O/W 19.80 20.08 8.07 21.00 50.5 21 1.26 1.55 15.7 12.8 11% 10.64 11.59 1.9 1.7 14% 15% 1.0% 1.2% 0.60 0.65 3.0% 24.5%Country average 159.4 65 16.1 14.6 7% 1.7 1.6 13% 12% 0.9% 1.0% 3.4% 21.8%ChinaBk of China E/W 4.28 4.98 1.82 4.49 210.2 140 0.31 0.36 12.3 10.4 19% 2.01 2.22 1.9 1.7 17% 18% 1.0% 1.0% 0.15 0.18 4.0% 14.4%Bank of Communications E/W 9.14 10.58 4.36 10.14 56.9 58 0.61 0.76 13.2 10.6 16% 3.47 4.02 2.3 2.0 20% 22% 1.0% 1.0% 0.21 0.25 2.5% 16.3%China CITIC E/W 6.77 6.98 2.51 6.06 30.5 34 0.38 0.44 15.6 13.5 17% 2.65 3.01 2.2 2.0 16% 17% 1.1% 1.0% 0.09 0.11 1.5% 17.3%China Construction Bk O/W 6.84 7.46 3.62 8.02 267.7 198 0.46 0.56 13.1 10.8 18% 2.38 2.71 2.5 2.2 23% 23% 1.3% 1.3% 0.22 0.26 3.7% 17.2%China Merchants Bk (HK) E/W 20.65 22.50 8.23 19.65 79.0 39 0.95 1.31 19.1 13.8 13% 5.04 6.10 3.6 3.0 23% 26% 1.0% 1.1% 0.25 0.33 1.4% 16.5%ICBC O/W 6.45 7.07 2.99 7.11 250.2 278 0.39 0.46 14.6 12.3 17% 2.03 2.31 2.8 2.5 22% 23% 1.2% 1.2% 0.19 0.23 3.3% 19.3%Shanghai Pudong Dev. Bk E/W 22.11 27.36 9.29 22.20 270.4 18 1.59 1.80 13.9 12.3 11% 7.68 9.33 2.9 2.4 30% 23% 0.8% 0.8% 0.17 0.19 0.8% 9.9%Industrial Bank E/W 39.53 43.48 14.57 36.80 134.3 29 2.43 2.79 16.3 14.2 15% 11.75 13.99 3.4 2.8 25% 24% 1.0% 1.0% 0.48 0.55 1.2% 23.2%Ningbo U/W 15.81 16.31 6.79 10.46 36.4 6 0.58 0.76 27.1 20.7 18% 3.90 4.45 4.0 3.6 17% 20% 1.2% 1.2% 0.22 0.29 1.4% 37.6%Country average 1,335.6 801 14.1 11.7 17% 2.6 2.3 21% 22% 1.1% 1.1% 3.1% 17.6%IndiaAXIS Bank E/W 1003.65 1063 279 930 11.7 8 50.57 56.98 19.8 17.6 27% 284.5 392.1 3.5 2.6 21% 21% 1.4% 1.4% 10.00 10.00 1.0% 30.7%HDFC Bank E/W 1783.35 1836 774 1600 7.3 16 52.77 70.23 33.8 25.4 25% 353.9 466.1 5.0 3.8 20% 20% 1.4% 1.5% 10.00 11.00 0.6% 53.1%ICICI Bank E/W 863.25 984 253 800 35.3 21 33.76 35.31 25.6 24.4 5% 444.9 467.9 1.9 1.8 8% 8% 1.0% 1.0% 12.36 12.36 1.4% 44.0%Kotak Mahindra Bank U/W 800.85 850 208 370 4.9 6 18.87 27.94 42.4 28.7 4% 188.7 214.9 4.2 3.7 11% 15% 1.6% 2.2% 0.75 1.50 0.1% 200.3%Yes Bank O/W 255.45 278 41 330 2.5 2 10.23 13.86 25.0 18.4 31% 54.7 68.6 4.7 3.7 23% 25% 1.5% 1.5% 0.00 0.00 0.0% 46.9%- private banks 61.7 52 27.8 24.1 14% 3.1 2.6 14% 14% 1.2% 1.3% 1.1% 57.0%BOB O/W 499.15 563 181 635 1.7 4 60.93 60.90 8.2 8.2 20% 351.2 401.6 1.4 1.2 20% 17% 1.1% 0.9% 8.97 8.97 1.8% 9.5%BOI O/W 387.45 472 180 470 2.8 4 57.18 47.77 6.8 8.1 14% 224.1 262.5 1.7 1.5 34% 21% 1.5% 1.0% 9.35 9.36 2.4% 10.7%Canara Bank E/W 401.25 437 144 400 1.0 4 50.55 43.21 7.9 9.3 6% 297.8 331.6 1.3 1.2 20% 15% 1.0% 0.7% 8.00 8.00 2.0% 8.8%Corporation Bank O/W 438.30 480 156 545 0.2 1 62.24 65.05 7.0 6.7 13% 341.4 392.0 1.3 1.1 21% 19% 1.2% 1.0% 12.50 14.38 2.9% 8.5%IDBI U/W 132.55 139 40 60 3.6 2 11.85 11.31 11.2 11.7 (6%) 102.7 111.1 1.3 1.2 13% 11% 0.6% 0.4% 2.50 2.50 1.9% 8.5%OBC O/W 263.60 296 95 335 0.9 1 36.14 34.80 7.3 7.6 (1%) 295.5 321.8 0.9 0.8 16% 12% 0.9% 0.7% 8.54 8.54 3.2% 6.7%Punjab National Bank O/W 917.10 943 286 1015 3.1 6 98.35 88.68 9.3 10.3 18% 464.7 530.4 2.0 1.7 25% 19% 1.4% 1.0% 20.00 20.00 2.2% 13.8%SBI O/W 2265.75 2500 894 3000 27.5 31 175.99 174.33 12.9 13.0 10% 1098.4 1230.5 2.1 1.8 19% 16% 1.0% 0.8% 39.56 41.39 1.7% 14.3%Union Bk O/W 264.30 291 115 324 1.0 3 34.18 30.85 7.7 8.6 12% 173.0 198.0 1.5 1.3 23% 18% 1.2% 0.9% 5.00 5.00 1.9% 9.6%- state banks 41.9 57 11.5 11.8 9% 1.9 1.7 18% 16% 1.0% 0.8% 1.9% 12.9%HDFC O/W 2693.15 2875 1116 3100 10.1 16 80.24 91.48 33.6 29.4 16% 461.9 510.5 5.8 5.3 19% 20% 2.6% 2.5% 30.00 34.00 1.1% 395.4%IDFC O/W 164.25 180 44 180 7.9 5 5.79 7.71 28.4 21.3 16% 47.7 54.0 3.4 3.0 13% 16% 2.6% 3.1% 1.40 1.40 0.9% 0.0%- NBFI's 18.0 21 31.3 25.9 16% 4.8 4.3 17% 18% 2.6% 2.8% 1.0% 222.9%IndonesiaDanamon O/W 4400 5100 1568 4922 5.1 2 209 359 21.0 12.3 13% 1,820 2,090 2.4 2.1 13% 20% 1.2% 2.4% 78 174 1.8% 26.8%Mandiri O/W 4675 5300 1680 5194 11.2 10 337 428 13.9 10.9 25% 1,662 1,972 2.8 2.4 23% 26% 1.9% 2.2% 118 150 2.5% 30.5%BRI O/W 7850 8700 3550 9238 11.6 10 575 699 13.7 11.2 20% 2,254 2,732 3.5 2.9 31% 31% 2.6% 2.7% 201 245 2.6% 40.4%BCA E/W 4825 5500 2275 4583 6.0 13 279 325 17.3 14.8 17% 1,131 1,303 4.3 3.7 29% 29% 2.6% 2.8% 153 157 3.2% 50.3%Country average 33.9 35 15.5 11.9 20% 3.2 2.7 25% 27% 2.2% 2.5% 2.5% 36.8%ThailandBangkok Bank O/W 111.50 135.00 65.00 130.00 6.4 6 10.62 13.31 10.5 8.4 18% 99.6 109.6 1.1 1.0 12% 13% 1.1% 1.3% 3.00 3.25 2.7% 15.1%Kasikornbank E/W 84.00 91.00 40.25 86.00 18.8 6 6.56 8.60 12.8 9.8 19% 51.7 58.0 1.6 1.4 14% 17% 1.2% 1.6% 2.25 2.50 2.7% 21.3%Krung Thai Bank E/W 9.95 10.30 3.50 8.50 7.0 3 0.97 1.02 10.2 9.7 15% 9.4 10.0 1.1 1.0 10% 11% 0.8% 0.7% 0.44 0.45 4.4% 9.3%Siam Comm'l Bank O/W 85.75 91.75 44.50 90.00 19.0 9 6.55 8.14 13.1 10.5 21% 41.6 47.0 2.1 1.8 19% 20% 1.7% 1.9% 2.75 2.75 3.2% 28.4%TMB O/W 1.12 1.37 0.43 1.20 7.1 1 0.13 0.19 8.7 5.8 226% 1.2 1.4 0.9 0.8 12% 16% 0.8% 1.1% 0.00 0.00 0.0% 9.4%Country average 58.3 26 11.8 9.4 17% 1.6 1.4 15% 16% 1.3% 1.5% 2.7% 20.0%MalaysiaCIMB Group E/W 12.84 13.48 5.75 12.36 16.8 14 0.72 0.82 17.8 15.6 11% 5.46 6.03 2.3 2.1 15% 15% 1.2% 1.3% 0.30 0.35 2.3% 27.7%Hong Leong Bank U/W 8.15 8.40 4.94 4.50 1.5 4 0.63 0.37 12.9 21.7 (6%) 3.63 3.77 2.2 2.2 18% 9% 1.2% 0.7% 0.15 0.28 1.8% 19.1%Maybank U/W 6.76 7.08 3.50 5.94 10.6 14 0.42 0.40 16.0 17.1 (13%) 3.52 3.78 1.9 1.8 13% 11% 0.8% 0.9% 0.07 0.16 1.1% 22.5%Public Bank O/W 10.98 11.04 6.85 13.60 6.4 11 0.72 0.81 15.4 13.5 5% 3.13 3.51 3.5 3.1 26% 25% 1.2% 1.3% 0.55 0.55 5.0% 21.3%Country average 35.2 43 16.6 15.9 2% 2.4 2.2 16% 16% 1.1% 1.1% 0.27 0.33 2.4% 24.6%PhilippinesMBT O/W 44.50 47.50 19.50 58.00 1.7 2 2.92 3.83 15.2 11.6 32% 34.43 37.25 1.3 1.2 9% 11% 0.7% 0.8% 0.80 1.20 1.8% 13.1%BPI O/W 47.50 49.00 31.00 57.00 1.8 3 2.97 3.40 16.0 14.0 29% 20.75 22.49 2.3 2.1 15% 16% 1.4% 1.4% 1.80 1.90 3.8% 25.9%BDO E/W 38.50 41.00 19.75 36.00 1.2 2 1.61 2.00 23.9 19.3 57% 23.95 25.55 1.6 1.5 7% 8% 0.4% 0.4% 0.40 0.50 1.0% 11.3%Country average 4.7 7 17.7 14.5 37% 1.8 1.6 11% 12% 0.9% 0.9% 2.4% 17.6%PakistanMCB n.a 206.11 244.00 68.18 ++ 6.3 2 21.72 22.79 9.5 9.0 0% 98.88 111.68 2.1 1.8 24% 23% 3.0% 2.9% 10.00 10.00 4.9% 32.2%UBL O/W 56.80 66.50 25.38 125.00 1.7 1 9.22 10.54 6.2 5.4 20% 51.35 60.39 1.1 0.9 21% 21% 1.5% 1.6% 1.50 1.75 2.6% 10.1%Country average 8.0 2 8.8 8.3 5% 1.9 1.7 23% 23% 2.7% 2.6% 4.4% 27.5%KoreaHana Financial E/W 35,650 41,750 16,100 40,000 59.5 6 1,300 3,980 27.4 9.0 30% 44,363 48,332 0.8 0.7 3% 9% 0.2% 0.5% 0 253 0.0% 7.7%Kookmin Financial O/W 61,700 64,100 25,438 73,000 101.9 18 2,583 6,043 23.9 10.2 10% 51,888 57,597 1.2 1.1 6% 12% 0.3% 0.7% 400 600 0.6% 11.9%KEB O/W 14,700 15,450 5,000 16,000 34.7 8 1,217 1,331 12.1 11.0 10% 11,979 13,190 1.2 1.1 12% 11% 0.8% 0.8% 200 425 1.4% 17.4%Shinhan Financial O/W 45,650 49,950 20,400 53,000 100.0 19 3,140 4,504 14.5 10.1 5% 32,629 37,762 1.4 1.2 11% 14% 0.6% 0.8% 250 500 0.5% 14.5%Busan Bank O/W 13,900 14,550 4,840 16,500 14.4 2 1,423 1,637 9.8 8.5 0% 11,119 12,559 1.3 1.1 15% 15% 0.9% 0.9% 211 200 1.5% 14.1%Daegu Bank E/W 17,000 18,400 5,360 16,000 8.9 2 1,437 1,675 11.8 10.1 1% 13,514 14,940 1.3 1.1 12% 12% 0.7% 0.7% 250 350 1.5% 12.4%IBK O/W 14,000 15,700 5,300 18,000 34.7 7 1,095 1,833 12.8 7.6 12% 14,568 16,444 1.0 0.9 9% 13% 0.4% 0.7% 0 100 0.0% 16.0%Woori Finance E/W 15,050 17,200 5,550 14,500 79.9 10 1,234 1,593 12.2 9.4 54% 15,723 17,452 1.0 0.9 8% 10% 0.3% 0.4% 150 250 1.0% 6.7%Country average 433.9 74 17.5 9.7 19% 1.1 1.0 8% 12% 0.4% 0.7% 0.7% 11.8%TaiwanChang Hwa Bank E/W 15.00 16.70 9.46 14.90 10.7 3 0.74 0.71 20.4 21.2 4% 13.11 13.55 1.1 1.1 6% 5% 0.3% 0.3% 0.27 0.35 1.8% 7.8%Chinatrust Financial E/W 19.50 22.68 9.30 21.80 44.3 6 1.30 1.24 15.0 15.7 60% 13.51 14.71 1.4 1.3 11% 9% 0.7% 0.6% 0.04 0.29 0.2% 13.8%Fubon Financial E/W 37.20 40.45 16.60 40.10 34.3 9 6.39 2.21 5.8 16.8 NM 25.13 24.72 1.5 1.5 36% 9% 2.6% 0.9% 2.62 1.55 7.1% 28.4%Mega Holdings E/W 18.30 21.60 8.60 20.90 14.8 6 1.26 1.21 14.5 15.2 412% 17.31 17.63 1.1 1.0 8% 7% 0.5% 0.5% 0.89 0.84 4.8% 14.1%Taishin n.a 12.10 14.80 4.30 ++ 19.9 3 1.76 0.49 6.9 24.8 NM 10.43 10.75 1.2 1.1 20% 3% 1.1% 0.2% 0.00 0.00 0.0% 13.4%Yuanta E/W 22.20 26.00 11.55 25.30 29.6 6 0.92 1.19 24.0 18.6 135% 14.06 14.46 1.6 1.5 7% 8% 1.5% 1.9% 0.79 1.02 3.6% 58.8%E.Sun Financial E/W 13.00 15.00 6.89 13.60 5.6 2 0.64 0.74 20.4 17.7 50% 13.42 13.75 1.0 0.9 5% 5% 0.3% 0.3% 0.32 0.50 2.5% 6.8%First Financial E/W 19.20 21.85 11.90 20.80 26.9 4 0.96 1.08 20.1 17.7 6% 16.19 16.60 1.2 1.2 6% 7% 0.3% 0.4% 0.58 0.65 3.0% 8.0%SinoPac Holdings E/W 12.00 13.90 5.31 12.80 12.9 3 (0.00) 0.68 nm 17.6 NM 11.68 12.35 1.0 1.0 (0%) 6% (0.0%) 0.5% 0.00 0.47 0.0% 10.2%Country average 199.1 40 14.1 17.9 NA 1.3 1.3 13% 7% 1.0% 0.7% 2.7% 21.5%

DPS52 week EPS P/E BVPS P/B ROE RoA

Source: Company data, Morgan Stanley Research. E = Morgan Stanley Research estimates. *India data is FY10e & FY11e (March 31 yr end). Stock prices as of December 11, 2009 close. NA = Not available.

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Loans/ Loans/ Tier Tier Totaldeposits assets 2009E 2010E 2009E 2010E 2009E 2010E one two CAR 2009E 2010E 2009E 2010E 2009E 2010E 2009E 2010E 2009E 2010E 2009E 2010E 2009E 2010E

Regional BanksHSBC 82% 38% 4.6% 5.7% 94% 90% 4.3% 5.1% 10.3% NA 13% 2.62% 2.54% 46% 45% 50% 53% 1.4% 1.4% 1.4% 1.3% 2.29% 1.77% 0.7% 0.9%Standard Chartered 82% 47% 3.2% 5.5% 53% 31% 1.7% 1.7% 11.1% NA 16% 2.17% 1.96% 49% 50% 52% 53% 1.7% 1.8% 1.6% 1.6% 1.00% 0.78% 1.8% 1.7%

AustraliaANZ Bank 153% 74% 1.6% 1.1% 81% 126% 1.3% 1.3% 10.6% 3.1% 14% 2.29% 2.33% 30% 35% 44% 47% 1.2% 1.5% 1.5% 1.7% 1.10% 1.19% 1.2% 1.4%Bank of Queensland 117% 83% 0.4% 0.4% 44% 55% 0.2% 0.2% 8.9% 2.7% 3% 1.56% 1.54% 24% 22% 50% 43% 1.0% 0.8% 1.0% 1.1% 0.39% 0.51% 1.2% 1.2%Commonwealth Bk Aust 166% 79% 0.9% 1.0% 118% 104% 1.0% 1.0% 8.1% 2.3% 10% 2.12% 2.09% 39% 40% 46% 45% 1.3% 1.4% 1.5% 1.6% 1.25% 0.95% 1.8% 1.8%Nat Aust Bank 158% 62% 1.4% 1.7% 80% 75% 1.1% 1.3% 9.0% 2.5% 11% 2.16% 2.21% 29% 29% 45% 44% 1.1% 1.2% 1.4% 1.5% 1.10% 1.17% 1.1% 1.1%Westpac Banking 175% 79% 0.8% 0.8% 126% 132% 1.0% 1.0% 8.1% 2.7% 11% 2.33% 2.33% 30% 28% 40% 41% 1.1% 1.2% 1.7% 1.7% 1.24% 1.07% 1.7% 1.7%Bendigo Bank 122% 83% 0.6% 0.6% 86% 80% 0.5% 0.5% 7.4% 3.5% 11% 1.40% 1.54% 33% 32% 65% 59% 1.3% 1.3% 0.7% 0.9% 0.38% 0.31% 0.8% 0.9%Macquarie 208% 30% 1.2% 2.2% 119% 41% 1.4% 0.9% NA NA NA 0.91% 1.02% 86% 88% 74% 77% 3.2% 3.8% 1.1% 1.1% NA NA NA NACountry average 166% 70% 1.1% 1.2% 103% 102% 1.1% 1.1% 8.1% 2.4% 10% 2.02% 2.03% 37% 37% 47% 47% 1.4% 1.5% 1.5% 1.6% 1.06% 0.98% 1.3% 1.4%Hong KongHang Seng Bank 56% 43% 1.5% 2.0% 42% 32% 0.6% 0.6% 12.4% 3.5% 16% 1.91% 1.86% 33% 33% 30% 30% 0.8% 0.8% 1.9% 1.9% 0.46% 0.51% 5.2% 5.6%Bank of East Asia 71% 61% 1.5% 2.5% 24% 13% 0.4% 0.3% 8.8% 6.2% 15% 1.57% 1.64% 33% 31% 65% 65% 1.5% 1.5% 0.8% 0.8% 0.35% 0.43% 0.7% 0.7%Dah Sing Financial 80% 58% 3.0% 3.5% 30% 18% 0.9% 0.6% 8.9% 6.2% 15% 1.90% 1.89% 23% 27% 60% 47% 1.4% 1.2% 1.0% 1.3% 0.65% 0.55% 0.9% 1.3%Wing Hang Bank 63% 55% 1.5% 2.0% 22% 21% 0.3% 0.4% 9.3% 7.0% 16% 1.51% 1.52% 24% 26% 47% 44% 1.0% 1.0% 1.1% 1.2% 0.25% 0.30% 1.5% 1.7%BOC Hong Kong 51% 41% 0.6% 0.7% 71% 63% 0.4% 0.5% 11.7% 4.9% 17% 1.55% 1.50% 35% 33% 31% 32% 0.7% 0.7% 1.6% 1.5% 0.53% -0.34% 2.1% 2.6%ICBC (Asia) 72% 62% 1.4% 1.4% 50% 46% 0.7% 0.6% 8.0% 3.1% 11% 1.44% 1.39% 26% 23% 33% 34% 0.6% 0.6% 1.3% 1.2% 0.38% 0.30% 1.3% 1.3%Country average 55% 43% 1.1% 1.4% 56% 47% 0.5% 0.6% 11.8% 4.4% 16% 1.70% 1.66% 33% 32% 31% 32% 0.8% 0.7% 1.7% 1.6% 0.48% 0.08% 3.4% 3.8%SingaporeDBS 70% 49% 3.7% 4.3% 52% 58% 1.9% 2.5% 13.0% 3.6% 17% 2.03% 2.06% 33% 28% 39% 43% 1.0% 1.0% 1.5% 1.4% 0.77% 0.51% 1.1% 1.2%OCBC 75% 43% 2.5% 2.6% 100% 132% 2.5% 3.5% 15.5% 0.6% 16% 2.27% 2.18% 42% 43% 41% 37% 1.1% 1.0% 1.6% 1.7% 0.39% 0.48% 1.9% 2.0%UOB 84% 56% 3.0% 3.3% 95% 86% 2.9% 2.9% 12.9% 4.7% 18% 2.34% 2.26% 33% 30% 37% 39% 1.1% 1.1% 1.9% 1.7% 1.10% 0.48% 1.8% 2.1%Country average 76% 50% 3.2% 3.6% 76% 83% 2.3% 2.8% 13.5% 3.3% 17% 2.18% 2.15% 35% 32% 39% 41% 1.1% 1.1% 1.7% 1.6% 0.79% 0.49% 1.5% 1.6%ChinaBk of China 71% 55% 1.6% 1.6% 152% 169% 2.5% 2.6% 9.3% 2.2% 12% 2.11% 2.18% 31% 28% 46% 43% 1.3% 1.3% 1.6% 1.7% 0.35% 0.55% 1.6% 1.5%Bank of Communications 75% 54% 1.5% 1.5% 140% 150% 2.0% 2.2% 8.1% 4.2% 12% 2.30% 2.39% 17% 15% 40% 37% 1.0% 1.0% 1.6% 1.7% 0.64% 0.71% 1.9% 1.8%China CITIC 79% 65% 1.1% 1.2% 131% 130% 1.5% 1.6% 8.8% 7.7% 10% 2.55% 2.47% 11% 11% 42% 41% 1.2% 1.2% 1.6% 1.7% 0.33% 0.52% 1.6% 1.4%China Construction Bk 61% 50% 1.5% 1.4% 166% 174% 2.5% 2.5% 9.9% 2.0% 12% 2.42% 2.48% 21% 19% 39% 36% 1.2% 1.1% 1.9% 2.0% 0.40% 0.52% 2.3% 2.3%China Merchants Bk (HK) 74% 58% 0.8% 0.7% 254% 304% 2.1% 2.1% 6.6% 3.5% 10% 2.26% 2.49% 22% 17% 49% 44% 1.4% 1.4% 1.5% 1.7% 0.36% 0.51% 1.7% 1.9%ICBC 57% 47% 1.6% 1.5% 155% 167% 2.5% 2.5% 10.7% 3.1% 14% 2.28% 2.36% 21% 19% 38% 36% 1.1% 1.0% 1.8% 1.8% 0.38% 0.51% 2.5% 2.5%Shanghai Pudong Dev. Bk 74% 55% 1.0% 1.0% 210% 203% 2.0% 2.1% 6.7% 3.0% 10% 2.22% 2.30% 9% 8% 45% 41% 1.1% 1.0% 1.3% 1.5% 0.45% 0.66% 1.5% 1.5%Industrial Bank 82% 53% 0.6% 0.7% 237% 223% 1.5% 1.6% 7.9% 2.6% 10% 2.15% 2.20% 13% 12% 45% 41% 1.2% 1.1% 1.4% 1.5% 0.30% 0.61% 2.0% 1.7%Ningbo 77% 56% 0.8% 0.9% 165% 168% 1.3% 1.6% 10.1% 0.9% 11% 2.98% 3.10% 13% 11% 47% 45% 1.5% 1.5% 1.7% 1.8% 0.59% 0.61% 1.9% 1.7%Country average 65% 52% 1.5% 1.4% 164% 176% 2.4% 2.4% 9.6% 2.9% 12% 2.29% 2.37% 22% 19% 41% 38% 1.2% 1.1% 1.7% 1.8% 0.40% 0.54% 2.1% 2.1%IndiaAXIS Bank 70% 56% 1.1% 1.4% 64% 72% 0.7% 1.0% 9.3% 4.4% 14% 2.96% 3.10% 44% 44% 46% 44% 2.3% 2.4% 2.8% 3.0% 0.81% 1.27% 1.8% 1.8%HDFC Bank 70% 55% 2.0% 2.2% 68% 78% 1.4% 1.7% 10.6% 5.1% 16% 4.90% 4.89% 31% 30% 53% 49% 3.6% 3.3% 3.2% 3.4% 1.46% 1.69% 1.9% 2.1%ICICI Bank 102% 59% 4.3% 5.6% 53% 59% 2.3% 3.3% 11.8% 3.7% 16% 2.30% 2.45% 48% 47% 44% 40% 1.8% 1.7% 2.3% 2.6% 1.08% 1.27% 1.1% 1.2%Kotak Mahindra Bank 165% 57% 3.2% 2.3% 46% 54% 1.5% 1.2% 16.1% 3.9% 20% 6.32% 5.98% 55% 62% 74% 67% 9.8% 9.8% 3.3% 4.7% 1.59% 1.65% 3.1% 4.2%Yes Bank 77% 54% 0.7% 0.7% 52% 75% 0.4% 0.5% 9.5% 7.1% 17% 2.72% 3.04% 46% 41% 44% 41% 2.1% 2.0% 2.7% 2.9% 0.41% 0.67% 1.8% 1.9%- private banks 99% 60% 3.2% 4.0% 58% 67% 1.7% 2.4% 11.8% 4.4% 16% 3.18% 3.29% 47% 47% 50% 46% 2.9% 2.8% 2.7% 3.1% 1.10% 1.35% 1.6% 1.7%BOB 76% 64% 1.3% 1.5% 76% 83% 1.0% 1.3% 8.5% 5.6% 14% 2.60% 2.33% 35% 30% 53% 45% 2.1% 1.5% 1.8% 1.8% 0.28% 0.76% 1.8% 1.6%BOI 76% 64% 1.7% 3.0% 75% 65% 1.3% 1.9% 8.9% 4.1% 13% 2.82% 2.53% 36% 32% 44% 43% 1.9% 1.6% 2.4% 2.1% 0.49% 1.01% 2.4% 1.7%Canara Bank 74% 63% 1.6% 2.9% 30% 49% 0.5% 1.4% 8.0% 6.1% 14% 2.43% 2.30% 33% 33% 51% 47% 1.8% 1.5% 1.7% 1.8% 0.75% 1.48% 1.7% 1.3%Corporation Bank 66% 56% 1.1% 1.4% 75% 84% 0.9% 1.2% 8.9% 4.7% 14% 2.28% 2.13% 40% 37% 44% 41% 1.6% 1.3% 2.0% 1.9% 0.43% 0.78% 2.1% 1.9%IDBI 92% 61% 1.4% 1.9% 34% 51% 0.5% 1.0% 6.8% 4.8% 12% 0.73% 0.98% 66% 62% 58% 45% 1.1% 0.9% 0.8% 1.1% 0.11% 0.77% 0.7% 0.5%OBC 70% 61% 1.5% 2.0% 58% 69% 0.9% 1.4% 9.1% 3.9% 13% 2.02% 1.80% 35% 36% 57% 46% 1.7% 1.2% 1.3% 1.5% 0.25% 0.85% 1.3% 1.1%Punjab National Bank 75% 64% 1.8% 2.4% 90% 87% 1.6% 2.1% 9.0% 5.1% 14% 3.26% 3.08% 29% 30% 44% 46% 2.0% 2.0% 2.5% 2.3% 0.55% 1.09% 2.1% 1.7%SBI 74% 58% 2.5% 2.9% 41% 49% 1.0% 1.4% 9.4% 4.9% 14% 2.52% 2.27% 36% 37% 53% 50% 2.0% 1.7% 1.8% 1.7% 0.61% 1.26% 2.1% 1.8%Union Bk 71% 61% 2.0% 2.6% 83% 85% 1.6% 2.2% 8.2% 5.1% 13% 2.79% 2.37% 28% 34% 45% 45% 1.7% 1.5% 2.0% 1.9% 0.62% 1.20% 1.9% 1.5%- state banks 76% 60% 2.2% 2.7% 49% 56% 1.0% 1.5% 9.0% 4.9% 14% 2.43% 2.23% 38% 38% 52% 48% 1.9% 1.6% 1.8% 1.7% 0.54% 1.16% 1.9% 1.7%HDFC 443% 88% 0.8% 0.8% 89% 91% 0.7% 0.8% 13.2% 1.9% 15% 3.96% 3.80% 10% 14% 9% 9% 0.4% 0.3% 3.7% 3.6% 0.07% 0.07% 3.0% 3.0%IDFC 0% 70% 0.4% 0.6% 476% 328% 1.8% 2.1% 20.0% 3.7% 24% 3.01% 3.44% 51% 49% 23% 23% 1.2% 1.4% 4.1% 4.6% 0.61% 0.45% 2.9% 3.2%- NBFI's 250% 81% 0.6% 0.8% 257% 194% 1.2% 1.4% 16.2% 2.7% 19% 3.55% 3.64% 28% 29% 15% 15% 0.7% 0.8% 3.9% 4.0% 0.30% 0.24% 3.0% 3.1%IndonesiaDanamon 89% 61% 3.3% 3.1% 92% 110% 3.0% 3.4% 18.7% 1.4% 20% 9.22% 10.03% 15% 15% 61% 55% 5.6% 5.5% 3.5% 4.5% 2.54% 1.80% 1.9% 3.6%Mandiri 65% 53% 5.5% 5.2% 118% 122% 6.5% 6.3% 12.3% 2.5% 15% 4.67% 4.96% 28% 27% 46% 45% 2.8% 2.8% 3.3% 3.5% 1.39% 1.19% 3.8% 4.1%BRI 88% 71% 4.1% 4.3% 174% 167% 7.1% 7.1% 11.7% 0.8% 12% 8.46% 8.37% 16% 14% 45% 47% 4.4% 4.5% 5.4% 5.0% 3.97% 2.48% 4.4% 4.5%BCA 51% 44% 1.1% 1.1% 340% 295% 3.8% 3.4% 15.9% 0.5% 16% 5.43% 5.14% 27% 27% 42% 43% 3.1% 3.0% 4.3% 3.9% 1.83% 0.62% 5.0% 5.2%Country average 74% 59% 3.9% 3.8% 173% 166% 5.7% 5.6% 13.7% 1.4% 15% 6.79% 6.93% 22% 21% 47% 47% 3.8% 3.8% 4.2% 4.2% 2.52% 1.62% 3.9% 4.3%ThailandBangkok Bank 84% 63% 5.2% 4.9% 109% 113% 5.6% 5.6% 12.4% 3.0% 15% 2.97% 3.13% 34% 33% 52% 49% 2.3% 2.2% 2.1% 2.3% 0.63% 0.57% 1.6% 1.9%Kasikornbank 98% 74% 4.0% 3.8% 83% 86% 3.3% 3.3% 10.5% 5.0% 15% 3.84% 4.17% 37% 38% 56% 55% 3.1% 3.5% 2.4% 2.8% 0.96% 0.82% 1.6% 2.0%Krung Thai Bank 97% 76% 8.9% 9.4% 41% 44% 3.6% 4.1% 9.4% 5.4% 15% 3.21% 3.28% 22% 22% 57% 55% 2.3% 2.2% 1.7% 1.8% 1.03% 1.30% 1.0% 1.0%Siam Comm'l Bank 92% 69% 5.0% 4.7% 91% 98% 4.6% 4.6% 11.2% 4.0% 15% 3.60% 3.71% 40% 41% 49% 46% 2.7% 2.7% 2.8% 3.1% 0.63% 0.67% 2.4% 2.7%TMB 86% 63% 12.7% 9.7% 83% 103% 10.5% 10.1% 11.3% 4.0% 15% 2.42% 2.62% 34% 35% 65% 59% 2.3% 2.3% 1.3% 1.6% 0.69% 0.70% 1.3% 2.0%Country average 93% 70% 6.1% 5.6% 84% 90% 4.9% 4.9% 10.9% 4.4% 15% 3.42% 3.61% 35% 36% 55% 52% 2.7% 2.8% 2.3% 2.6% 0.79% 0.79% 1.8% 2.1%MalaysiaCIMB Group 81% 60% 5.0% 5.0% 86% 84% 4.3% 4.2% 11.0% 4.4% 14% 3.10% 3.15% 29% 29% 58% 58% 2.4% 2.4% 1.7% 1.8% 0.93% 0.72% 2.3% 2.3%Hong Leong Bank 53% 45% 2.2% 2.7% 100% 121% 2.3% 3.2% 15.9% 3.5% 19% 2.02% 1.81% 25% 24% 42% 51% 1.1% 1.2% 1.5% 1.1% 0.52% 0.99% 2.5% 1.5%Maybank 91% 62% 3.5% 3.2% 113% 116% 3.9% 3.8% 11.0% 5.5% 16% 2.71% 2.68% 30% 30% 51% 53% 1.8% 1.8% 1.7% 1.6% 0.65% 0.67% 1.1% 1.2%Public Bank 75% 64% 0.9% 0.9% 191% 211% 1.7% 1.8% 8.4% 5.2% 14% 2.35% 2.32% 22% 23% 35% 34% 1.0% 1.0% 1.9% 1.9% 0.59% 0.48% 2.1% 2.1%Country average 81% 61% 3.7% 3.6% 114% 118% 3.6% 3.6% 10.7% 4.8% 15% 2.80% 2.80% 28% 28% 51% 52% 1.9% 1.9% 1.7% 1.7% 0.77% 0.67% 1.9% 1.9%PhilippinesMBT 64% 46% 4.8% 5.0% 99% 112% 4.8% 5.6% 9.6% 4.0% 14% 4.18% 4.28% 37% 39% 66% 66% 3.2% 3.2% 1.7% 1.6% 1.03% 0.94% 1.0% 1.2%BPI 59% 47% 4.2% 4.3% 71% 81% 3.0% 3.5% 12.3% 1.4% 14% 4.05% 4.19% 39% 38% 55% 54% 2.7% 2.6% 2.2% 2.2% 0.64% 0.67% 2.0% 2.4%BDO 77% 57% 5.0% 6.5% 87% 78% 4.4% 5.1% 6.1% 4.0% 10% 3.81% 3.67% 39% 41% 72% 70% 3.3% 3.0% 1.3% 1.3% 1.13% 0.95% 0.6% 0.5%Country average 65% 49% 4.6% 5.1% 85% 91% 4.0% 4.6% 9.7% 3.0% 13% 4.04% 4.09% 38% 39% 63% 62% 3.0% 2.9% 1.8% 1.8% 0.91% 0.84% 1.3% 1.5%PakistanMCB 78% 61% 8.0% 7.0% 65% 88% 5.2% 6.2% 17.1% 3.0% 20% 7.85% 7.76% 16% 17% 29% 33% 2.3% 2.6% 5.5% 5.3% 1.58% 1.57% 4.1% 3.9%UBL 76% 63% 5.5% 5.0% 114% 140% 6.3% 7.0% 8.2% 4.5% 13% 6.26% 6.19% 24% 26% 47% 46% 3.4% 3.4% 3.9% 4.1% 1.50% 1.57% 2.0% 2.1%Country average 77% 62% 7.5% 6.6% 76% 99% 5.4% 6.4% 15.2% 3.3% 18% 7.51% 7.42% 17% 19% 33% 36% 2.5% 2.8% 5.2% 5.0% 1.56% 1.57% 3.6% 3.5%KoreaHana Financial 109% 64% 1.2% 1.2% 133% 127% 1.5% 1.5% 10.8% 3.7% 15% 1.82% 1.95% 31% 34% 69% 59% 1.6% 1.5% 0.7% 1.1% 0.85% 0.79% 0.3% 0.9%Kookmin Financial 116% 75% 1.2% 1.2% 125% 131% 1.5% 1.6% 10.7% 3.2% 14% 2.50% 2.81% 23% 24% 64% 57% 1.9% 1.9% 1.1% 1.5% 1.32% 0.96% 0.6% 1.2%KEB 113% 60% 1.1% 1.1% 151% 158% 1.7% 1.7% 11.7% 4.0% 16% 2.44% 2.78% 30% 23% 53% 52% 1.5% 1.5% 1.3% 1.4% 1.23% 0.76% 1.3% 1.4%Shinhan Financial 111% 66% 1.2% 1.1% 179% 195% 2.1% 2.2% 11.8% 4.0% 16% 2.73% 2.93% 45% 42% 67% 66% 3.0% 3.0% 1.4% 1.6% 1.26% 1.06% 1.1% 1.7%Busan Bank 114% 67% 1.2% 1.1% 127% 130% 1.6% 1.5% 10.3% 4.2% 15% 3.24% 3.29% 6% 5% 47% 45% 1.5% 1.4% 1.7% 1.7% 0.71% 0.63% 1.1% 1.2%Daegu Bank 104% 65% 1.2% 1.3% 135% 145% 1.6% 1.8% 10.7% 3.3% 14% 3.21% 3.30% 10% 5% 52% 52% 1.6% 1.6% 1.5% 1.5% 0.75% 0.71% 0.9% 1.0%IBK 228% 76% 1.3% 1.3% 138% 134% 1.8% 1.8% 8.5% 3.9% 12% 2.53% 2.64% 2% 2% 43% 41% 1.0% 1.0% 1.3% 1.5% 1.15% 0.90% 0.6% 0.9%Woori Finance 111% 69% 1.7% 1.6% 99% 90% 1.6% 1.5% 10.1% 4.3% 14% 2.12% 2.28% 21% 18% 51% 52% 1.2% 1.3% 1.2% 1.2% 1.18% 1.03% 0.6% 0.7%Country average 121% 69% 1.3% 1.3% 137% 140% 1.7% 1.7% 10.8% 3.8% 14% 2.43% 2.63% 27% 25% 60% 56% 1.9% 1.9% 1.2% 1.4% 1.16% 0.94% 0.8% 1.2%TaiwanChang Hwa Bank 86% 70% 1.6% 1.7% 69% 64% 1.1% 1.1% 6.8% 2.6% 9% 0.94% 1.01% 34% 29% 59% 58% 0.8% 0.8% 0.5% 0.6% 0.00% 0.32% 0.5% 0.4%Chinatrust Financial 70% 50% 0.9% 1.0% 123% 119% 1.1% 1.2% 10.8% 3.4% 15% 2.00% 2.18% 65% 55% 44% 53% 1.5% 1.5% 2.0% 1.4% 0.94% 1.02% 1.1% 1.1%Fubon Financial 82% 41% 0.7% 0.9% 72% 75% 0.5% 0.6% 9.7% 1.8% 11% 1.07% 1.14% 84% 68% 21% 40% 0.9% 0.9% 3.3% 1.3% 0.43% 0.67% 6.9% 2.3%Mega Holdings 89% 47% 1.4% 1.6% 85% 75% 1.2% 1.2% 9.6% 2.0% 12% 1.27% 1.30% 45% 42% 40% 40% 0.7% 0.7% 1.1% 1.0% 0.70% 0.82% 0.9% 0.9%Taishin 84% 53% 1.0% 1.1% 228% 165% 2.4% 1.9% 9.5% 3.0% 13% 1.49% 1.64% 63% 35% 43% 56% 1.4% 1.1% 1.8% 0.9% 0.62% 0.68% 1.7% 0.3%Yuanta 96% 59% 1.4% 1.3% 149% 157% 2.0% 2.0% 8.4% 1.9% 11% 1.67% 1.97% 71% 70% 55% 49% 2.2% 2.2% 1.8% 2.3% 0.33% 0.50% 3.1% 4.0%E.Sun Financial 75% 57% 0.8% 0.8% 83% 87% 0.7% 0.7% 7.6% 4.1% 12% 0.96% 1.01% 41% 39% 65% 61% 1.0% 1.0% 0.5% 0.6% 0.37% 0.45% 0.5% 0.5%First Financial 74% 59% 1.5% 1.5% 56% 55% 0.8% 0.8% 6.9% 3.5% 10% 0.96% 1.04% 37% 33% 58% 55% 0.8% 0.8% 0.6% 0.7% 0.31% 0.38% 0.6% 0.6%SinoPac Holdings 78% 61% 1.2% 1.2% 72% 72% 0.9% 0.9% 8.9% 3.2% 12% 1.08% 1.27% 39% 43% 70% 56% 1.1% 1.1% 0.5% 0.9% 0.47% 0.56% (0.0%) 0.8%Country average 81% 53% 1.1% 1.2% 109% 103% 1.2% 1.2% 9.1% 2.7% 12% 1.40% 1.54% 60% 51% 46% 50% 1.3% 1.2% 1.7% 1.2% 0.53% 0.66% 2.3% 1.5%

RoRWAsCost/ Income Core profit'ityCost/ Avg assets LLP/ RWANon int inc/ total incNPL ratio Provision/ NPLs Provision/ LoansBalance Sheet Profit & Loss

NIM

Source: Company data, Morgan Stanley Research. E = Morgan Stanley Research estimates. *India data is FY10e & FY11e (March 31 yr end NA = Not available.

4



Morgan Stanley is currently acting as financial advisor to Industrial and Commercial Bank of China Limited ("ICBC ") in relation to its proposed acquisition ("Transaction") of The Bank of East Asia (Canada) from The Bank of East Asia, Limited (“BEA”).

The proposed Transaction is subject to (i) regulatory approvals, (ii) completion of the sale of 75% interests in ICEA Finance Holdings Limited from ICBC to BEA and (iii) other customary closing conditions. This report and the information provided herein is not intended to (i) provide voting advice, (ii) serve as an endorsement of the proposed transaction, or (iii) result in the procurement, withholding or revocation of a proxy or any other action by a security holder.

ICBC has agreed to pay fees to Morgan Stanley for its financial advice in connection with the Transaction.

Please refer to the notes at the end of the report.

Morgan Stanley & Co. Limited, an affiliate of Morgan Stanley, is acting as financial adviser to the Royal Bank of Scotland Group plc. in relation to its potential sale of selected businesses in Asia to Australia and New Zealand Banking Group Limited as announced on 4 August 2009 and to MCB Bank Limited as announced on 12 August 2009.

The proposed transaction is to be conditional, among other things, upon regulatory approvals.

In accordance with its general policy, Morgan Stanley currently expresses no rating or price target on Australia and New Zealand Banking Group Limited and MCB Bank Limited. This report and the information herein are not intended to serve as an endorsement or otherwise of the proposed transaction.

This report was prepared solely upon information generally available to the public. No representation is made that it is accurate and complete. This report is not a recommendation or an offer to buy or sell the securities mentioned. Please refer to the notes at the end of this report.

1) Funds managed by Morgan Stanley beneficially own approximately 2.7% of a class of voting securities in E.Sun Financial Holding Company Limited (E.Sun) and another class of securities with the entitlement to convert into voting securities in E.Sun

This report was prepared solely upon information generally available to the public. No representation is made that it is accurate or complete. This report is not a recommendation or an offer to buy or sell the securities mentioned.

Please refer to the notes at the end of the report.

Funds managed by Morgan Stanley, together with other investors, beneficially own approximately 4% of a class of securities in Chinatrust Financial Holdings, and have the right to appoint a nominee to the board of directors of Chinatrust Financial Holdings.

The proposed transaction is subject to the consent of the shareholders of Taishin FHC and KGI Securities, regulatory approvals and other customary closing conditions. This report and the information provided herein is not intended to (i) provide voting advice, (ii) serve as an endorsement of the proposed transaction, or (iii) result in the procurement, withholding or revocation of a proxy or any other action by a security holder.

Taishin FHC has agreed to pay fees to Morgan Stanley for its financial advice.

HDFC may be deemed to be controlled by or under common control with Citigroup due to ownership, board or other relationship, and Citigroup may be deemed to control Morgan Stanley Smith Barney LLC due to ownership, board membership, or other relationships. Morgan Stanley Smith Barney LLC is a joint venture between Morgan Stanley and Citigroup.

5



AustraliaExhibit 1 1-yr Fwd Consensus P/E … off record highs but remain expensive expectation lower returns

13.2x

12.8x

7.0x

9.0x

11.0x

13.0x

15.0x

17.0x

19.0x

Mar

-95

Mar

-96

Mar

-97

Mar

-98

Mar

-99

Mar

-00

Mar

-01

Mar

-02

Mar

-03

Mar

-04

Mar

-05

Mar

-06

Mar

-07

Mar

-08

Mar

-09

Average Major Bank One-Year Forward P/E Multiple Source: FactSet, MSCI Exhibit 2 Historical Consensus P/B … expensive

2.1x

0.0 x

0.5 x

1.0 x

1.5 x

2.0 x

2.5 x

3.0 x

3.5 x

Sep

-89

Sep

-90

Sep

-91

Sep

-92

Sep

-93

Sep

-94

Sep

-95

Sep

-96

Sep

-97

Sep

-98

Sep

-99

Sep

-00

Sep

-01

Sep

-02

Sep

-03

Sep

-04

Sep

-05

Sep

-06

Sep

-07

Sep

-08

Sep

-09

Bank Sector P/BV

Source: Datastream, Morgan Stanley Research Exhibit 3 Major Bank Revenue per Share Growth … capital raisings dilute revenue per share growth

1.2%

5.5% 5.6%

2.8%

7.0%

5.4%

-1.1%

3.6%

8.0%

1.3%

6.9%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10E FY11E FY12E

Source: Company data, Morgan Stanley Research. E = Morgan Stanley Research estimates

Exhibit 4 Australia System Loan & Deposit Growth … declining at a slowing rate

7.9%

-6.9%-7.4%

5.8%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

Mar

-91

Mar

-92

Mar

-93

Mar

-94

Mar

-95

Mar

-96

Mar

-97

Mar

-98

Mar

-99

Mar

-00

Mar

-01

Mar

-02

Mar

-03

Mar

-04

Mar

-05

Mar

-06

Mar

-07

Mar

-08

Mar

-09

Housing Personal Business Deposits

Source: RBA, APRA, Morgan Stanley Research

Exhibit 5 Cash Rate … rates raised 75bp; BBSW /cash increasing

2.50%

3.50%

4.50%

5.50%

6.50%

7.50%

8.50%

Dec

-99

Jun-

00

Dec

-00

Jun-

01

Dec

-01

Jun-

02

Dec

-02

Jun-

03

Dec

-03

Jun-

04

Dec

-04

Jun-

05

Dec

-05

Jun-

06

Dec

-06

Jun-

07

Dec

-07

Jun-

08

Dec

-08

Jun-

09

Cash Rate 90 Day BBSW Source: RBA, Morgan Stanley Research

Exhibit 6 Major Banks Long Term Loan Loss Charges … higher cross cycle loss rates expected

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

FY88

FY89

FY90

FY91

FY92

FY93

FY94

FY95

FY96

FY97

FY98

FY99

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

E

FY11

E

FY12

E

FY13

E

FY14

E

FY15

E

FY16

E

FY17

E

Actual 15 year average of just 25bp

Forecast 7 year average of 45bp

Note: Impairment charges expressed as a percentage of gross loans. Source: Company data, Morgan Stanley Research. E = Morgan Stanley Research estimates

6



Exhibit 6 NIM …

1.50%

1.70%

1.90%

2.10%

2.30%

2.50%

2.70%

2.90%

3.10%

1H01

2H01

1H02

2H02

1H03

2H03

1H04

2H04

1H05

2H05

1H06

2H06

1H07

2H07

1H08

2H08

1H09

2H09

ANZ CBA NAB WBC

Source: Company data, Morgan Stanley Research

Exhibit 7 Non Interest Income/ Total Income …

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

1H01

2H01

1H02

2H02

1H03

2H03

1H04

2H04

1H05

2H05

1H06

2H06

1H07

2H07

1H08

2H08

1H09

2H09

ANZ CBA NAB WBC

Note – ANZ is presented excluding the impact of Credit intermediation trades Source: Company data, Morgan Stanley Research

Exhibit 8 Cost/ Avg Assets …

1.00%

1.20%

1.40%

1.60%

1.80%

2.00%

2.20%

2.40%

2.60%

1H01

2H01

1H02

2H02

1H03

2H03

1H04

2H04

1H05

2H05

1H06

2H06

1H07

2H07

1H08

2H08

1H09

2H09

ANZ CBA NAB WBC


Exhibit 9 LLP/ Loans (Annualized) …

0bp

10bp

20bp

30bp

40bp

50bp

60bp

70bp

80bp

90bp

100bp

1H01

2H01

1H02

2H02

1H03

2H03

1H04

2H04

1H05

2H05

1H06

2H06

1H07

2H07

1H08

2H08

1H09

2H09

ANZ CBA NAB WBC


Exhibit 10 ROA …

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1H01

2H01

1H02

2H02

1H03

2H03

1H04

2H04

1H05

2H05

1H06

2H06

1H07

2H07

1H08

2H08

1H09

2H09

ANZ CBA NAB WBC


Exhibit 11 Tier 1 Ratio …

7.91%6.51% 6.75% 6.57%

2.03%

2.19% 1.54%

2.12%

9.94%

8.70% 8.88%8.11%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

11.00%

ANZ Sept 2009 CBA Sept 2009 NAB Sept 2009 WBC Sept 2009

Core Tier 1 Ratio Residual Tier 1 Ratio Source: Company data, Morgan Stanley Research

7



Hong Kong Exhibit 12 HK Banks: Prospective P/E …

5

10

15

20

25

Jul-0

2

Jul-0

3

Jul-0

4

Jul-0

5

Jul-0

6

Jul-0

7

Jul-0

8

Jul-0

9

Large Banks Mid Banks (Ex. BEA) Hang Seng Index Source: FactSet, Bloomberg, Company data, Morgan Stanley Research Exhibit 13 HK Banks: Prospective P/B …

0

1

2

3

4

5

Jul-0

2

Jul-0

3

Jul-0

4

Jul-0

5

Jul-0

6

Jul-0

7

Jul-0

8

Jul-0

9

Large Banks Mid Banks Source: Bloomberg, Company data, Morgan Stanley Research Exhibit 14 HK: Prime Minus HIBOR 3M Spread …

0

1

2

3

4

5

6

Jan-

01

Jan-

02

Jan-

03

Jan-

04

Jan-

05

Jan-

06

Jan-

07

Jan-

08

Jan-

09

Source: Bloomberg, Morgan Stanley Research

Exhibit 15 HK: Loan & Deposits Growth YoY…

-30%

-20%

-10%

0%

10%

20%

30%

40%

Jan-

92

Jan-

93

Jan-

94

Jan-

95

Jan-

96

Jan-

97

Jan-

98

Jan-

99

Jan-

00

Jan-

01

Jan-

02

Jan-

03

Jan-

04

Jan-

05

Jan-

06

Jan-

07

Jan-

08

Jan-

09

Total Loans Total Deposits Source: CEIC, Morgan Stanley Research

Exhibit 16 HK: Property Price Index

50

90

130

170

210

250

Jan-

00

Jan-

01

Jan-

02

Jan-

03

Jan-

04

Jan-

05

Jan-

06

Jan-

07

Jan-

08

Jan-

09

Commercial

Residential

Source: CEIC, Morgan Stanley Research

Exhibit 17 HK: Monthly Mortgage New Loan Market Share

0%

5%

10%

15%

20%

25%

30%

35%

Jan-

08

Feb-

08

Mar

-08

Apr

-08

May

-08

Jun-

08

Jul-0

8

Aug-

08

Sep-

08

Oct

-08

Nov

-08

Dec

-08

Jan-

09

Feb-

09

Mar

-09

Apr

-09

May

-09

Jun-

09

Jul-0

9

Aug-

09

Sep-

09

Oct

-09

HSBC

BOCHK

HSB

STAN

BEADBS(HK)

2H09 till date

Source: MReferrals, Morgan Stanley Research

8



Exhibit 18 NIM …

1.0%

1.3%

1.6%

1.9%

2.2%

2.5%

1H05

2H05

1H06

2H06

1H07

2H07

1H08

2H08

1H09

HSB BOCHK BEA ICBCA WHB DSF


Exhibit 19 Non interest income/ Total Income …

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

1H05

2H05

1H06

2H06

1H07

2H07

1H08

2H08

1H09



Exhibit 20 Cost/ Avg Assets (Annualized) …

0.3%

0.6%

0.9%

1.2%

1.5%

1.8%

1H05

2H05

1H06

2H06

1H07

2H07

1H08

2H08

1H09




-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

1H05

2H05

1H06

2H06

1H07

2H07

1H08

2H08

1H09



Exhibit 22 ROA …

-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%1H

05

2H05

1H06

2H06

1H07

2H07

1H08

2H08

1H09


z



6%

8%

10%

12%

14%

16%

1H05

2H05

1H06

2H06

1H07

2H07

1H08

2H08

1H09



9



Singapore Exhibit 24 1yr Fwd Consensus P/E …

5

10

15

20

25

30

Feb-93 Apr-94 Jun-95 Aug-96 Oct-97 Dec-98 Feb-00 Apr-01 Jun-02 Aug-03 Oct-04 Dec-05 Feb-07 Apr-08 Jun-09

DBS OCBC UOB

Source: FactSet, Morgan Stanley Research Exhibit 25 Historical P/B …

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Jan-92 Mar-93 May-94 Jul-95 Sep-96 Nov-97 Jan-99 Mar-00 May-01 Jul-02 Sep-03 Nov-04 Jan-06 Mar-07 May-08 Jul-09

DBS OCBC UOB

Source: Datastream, Morgan Stanley Research Exhibit 26 3mth SIBOR … expected to remain low

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Dec-99 Sep-00 Jun-01 Mar-02 Dec-02 Sep-03 Jun-04 Mar-05 Dec-05 Sep-06 Jun-07 Mar-08 Dec-08 Sep-09

%

Source: Datastream, MAS, Morgan Stanley Research

Exhibit 27 Loan & Deposit Growth … no loan growth

-5%

0%

5%

10%

15%

20%

25%

30%

Jan-92 Apr-93 Jul-94 Oct-95 Jan-97 Apr-98 Jul-99 Oct-00 Jan-02 Apr-03 Jul-04 Oct-05 Jan-07 Apr-08 Jul-09

YoY deposit growth YoY Loan growth

Source: MAS, Morgan Stanley Research Exhibit 28 Singapore GDP Growth… +0.6% YoY in 3Q09

-20

-15

-10

-5

0

5

10

15

20

25

Mar

-90

Mar

-92

Mar

-94

Mar

-96

Mar

-98

Mar

-00

Mar

-02

Mar

-04

Mar

-06

Mar

-08

GDP (%YoY)

GDP (%QoQ, saar)

Source: MITI CEIC, Morgan Stanley Research Exhibit 29 Singapore Construction Trends … boom over

-30-20

-10

0

1020

30

4050

60

70

Mar

-90

Mar

-91

Mar

-92

Mar

-93

Mar

-94

Mar

-95

Mar

-96

Mar

-97

Mar

-98

Mar

-99

Mar

-00

Mar

-01

Mar

-02

Mar

-03

Mar

-04

Mar

-05

Mar

-06

Mar

-07

Mar

-08

Mar

-09

Construction and worksConstruction: Residential BuildingsConstruction: Non-residential buildings

%YoY


10



Exhibit 30 NIM …

1.50%

1.68%

1.86%

2.04%

2.22%

2.40%

2.58%

1Q02 3Q02 1Q03 3Q03 1Q04 3Q04 1Q05 3Q05 1Q06 3Q06 1Q07 3Q07 1Q08 3Q08 1Q09 3Q09

DBS OCBC UOB



20%

25%

30%

35%

40%

45%

50%

55%


DBS OCBC UOB



0.80%

0.90%

1.00%

1.10%

1.20%

1.30%

1.40%

1.50%


DBS OCBC UOB



(50)

0

50

100

150

200


DBS OCBC UOB

bp


Exhibit 34 ROA …

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

1.80%

2.00%


DBS OCBC UOB


Exhibit 35 Tier 1 Ratio … the better measure, core tier one – DBS 10.4%, OCBC 9.7%, UOB 11.4%

7%

8%

9%

10%

11%

12%

13%

14%

15%

16%


DBS OCBC UOB


11



China Exhibit 36 1yr Fwd Consensus P/E …

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

Jan-

05

Apr

-05

Jul-0

5

Oct

-05

Jan-

06

Apr

-06

Jul-0

6

Oct

-06

Jan-

07

Apr

-07

Jul-0

7

Oct

-07

Jan-

08

Apr

-08

Jul-0

8

Oct

-08

Jan-

09

Apr

-09

Jul-0

9

Oct

-09

ICBC CCB BOC BoComm CMB

Source: FactSet, Morgan Stanley Research

Exhibit 37 1yr Forward P/B …

-0.51.01.52.02.53.03.54.04.55.05.56.06.57.0

Jan-

05

Apr

-05

Jul-0

5

Oct

-05

Jan-

06

Apr

-06

Jul-0

6

Oct

-06

Jan-

07

Apr

-07

Jul-0

7

Oct

-07

Jan-

08

Apr

-08

Jul-0

8

Oct

-08

Jan-

09

Apr

-09

Jul-0

9

Oct

-09

ICBC CCB BOC BoComm CMB

Source: FactSet, Morgan Stanley Research

Exhibit 38 China Yield Curve …

(0.50)

0.50

1.50

2.50

3.50

4.50

5.50

Jan-06

May-06

Sep-06

Jan-07

May-07

Sep-07

Jan-08

May-08

Sep-08

Jan-09

May-09

Sep-09

CN 7yr treasury Rate CN 7 yr treasury - CHIBORCHIBOR

%

Source: Bloomberg, FactSet, Morgan Stanley Research

Exhibit 39 China System Loan & Deposit Growth …

10%

15%

20%

25%

30%

35%

40%

Dec-03

Jun-04

Dec-04

Jun-05

Dec-05

Jun-06

Dec-06

Jun-07

Dec-07

Jun-08

Dec-08

Jun-09

Dec-09

Loan, Deposit,

Gro

wth

YoY


Exhibit 41 China Banks: Capital required for 1ppt increase in tier 1 ratio and dilution Rmb mil Capital required dilution*

ICBC 58,005 2.9%CCB 52,559 3.6%BOC Group 56,972 5.7%BoComm 18,451 4.6%CMB 11,811 3.3%Citic 11,417 5.1%Pudong 9,582 4.7%Minsheng 10,578 6.7%Industrial 7,329 3.7%Ningbo 969 2.6%* calculated based on Nov 25 closing Source: Company data, Morgan Stanley Research

Exhibit 42 China banks: M-L-T Capital Plan

Target Tier-1 Target CARDate of

Announcement

Pudong >=7% >=10% 18-Sep-09Industrial >=8% >=12% 23-Nov-09Ningbo >=9% >=12% 13-Oct-09 Source: Company data, Morgan Stanley Research

12



Exhibit 40 NIM …

2.00%2.20%2.40%2.60%2.80%3.00%3.20%3.40%3.60%3.80%

1H07 2H07 1H08 2H08 1H09

ICBC CCB

BOC Domestic* BoComm

CMB

Source: Company data, Morgan Stanley Research *Domestic RMB activities only


2.0%

7.0%

12.0%

17.0%

22.0%

27.0%

32.0%

37.0%

1H07 2H07 1H08 2H08 1H09

ICBC CCB BOC Group

BoComm CMB



0.80%

1.00%

1.20%

1.40%

1.60%

1.80%

2.00%

1H07 2H07 1H08 2H08 1H09

ICBC CCB BOC Group

BoComm CMB



10

30

50

70

90

110

130

150

1H07 2H07 1H08 2H08 1H09

ICBC CCB BOC Group

BoComm CMB

(bps)


Exhibit 44 ROA …

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

1.80%

2.00%

1H07 2H07 1H08 2H08 1H09

ICBC CCB BOC Group

BoComm CMB


Exhibit 45 Tier-1 Ratio …

6.0%

7.0%

8.0%

9.0%

10.0%

11.0%

12.0%

1H07 2H07 1H08 2H08 1H09

ICBC CCB BOC Group

BoComm CMB


13



India Exhibit 46 1yr Fwd P/E

0.0

7.0

14.0

21.0

28.0

35.0

Jan-

02

Jul-0

2

Jan-

03

Jul-0

3

Jan-

04

Jul-0

4

Jan-

05

Jul-0

5

Jan-

06

Jul-0

6

Jan-

07

Jul-0

7

Jan-

08

Jul-0

8

Jan-

09

Jul-0

9

Pvt Banks

SOE

Source: Morgan Stanley Research Estimates Exhibit 47 1-yr Forward P/B

0.0

0.7

1.4

2.1

2.8

3.5

Jan-

02

Jul-0

2

Jan-

03

Jul-0

3

Jan-

04

Jul-0

4

Jan-

05

Jul-0

5

Jan-

06

Jul-0

6

Jan-

07

Jul-0

7

Jan-

08

Jul-0

8

Jan-

09

Jul-0

9

Pvt Banks

SOE Banks

Source: Company data, Morgan Stanley Research Estimates Exhibit 48 India Yield Curve

-0.8

0.0

0.8

1.6

2.4

3.2

4.0

Nov

-03

Mar

-04

Jul-0

4

Nov

-04

Mar

-05

Jul-0

5

Nov

-05

Mar

-06

Jul-0

6

Nov

-06

Mar

-07

Jul-0

7

Nov

-07

Mar

-08

Jul-0

8

Nov

-08

Mar

-09

Jul-0

9

Nov

-09

10 Yr - 91Day Tbill

Source: Bloomberg, Morgan Stanley Research

Exhibit 49 India System Loan & Deposit Growth

7%

13%

18%

24%

29%

35%

Jan-

95O

ct-9

5Ju

l-96

Apr

-97

Jan-

98O

ct-9

8Ju

l-99

Apr

-00

Jan-

01O

ct-0

1Ju

l-02

Apr

-03

Jan-

04O

ct-0

4Ju

l-05

Apr

-06

Jan-

07O

ct-0

7Ju

l-08

Apr

-09

Source: RBI, Morgan Stanley Research

Exhibit 50 India: 3-mnth CP Rates

1.0

4.0

7.0

10.0

13.0

16.0

Jun-

05S

ep-0

5D

ec-0

5M

ar-0

6Ju

n-06

Sep

-06

Dec

-06

Mar

-07

Jun-

07S

ep-0

7D

ec-0

7M

ar-0

8Ju

n-08

Sep

-08

Dec

-08

Mar

-09

Jun-

09S

ep-0

9

Source: Bloomberg, Morgan Stanley Research Exhibit 51 India Banks: Deposit Spreads (91-Day T-Bill – Cost of Deposits). Higher Rates Are Good for NIM’s

-1.5%

-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

Jan-

02

Jan-

03

Jan-

04

Jan-

05

Jan-

06

Jan-

07

Jan-

08

Jan-

09

Jan-

10

Jan-

11

1.2%1.0% 1.1%

2.0% 2.0%

1.7%

0.4%

-0.4%

0.8%

MS Est.

Source: Company data, Morgan Stanley Research: Note: Deposit Spread = Trailing 12M average of the 91-Day T-Bill – Trailing 12M average of Cost of Funds (we use the weighted average cost of funds using SBI’s 1 year deposit rate and deposit mix as a proxy)

14



Exhibit 52 NIM …

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

F1Q

04F2

Q04

F3Q

04

F4Q

04F1

Q05

F2Q

05

F3Q

05F4

Q05

F1Q

06F2

Q06

F3Q

06

F4Q

06F1

Q07

F2Q

07F3

Q07

F4Q

07

F1Q

08F2

Q08

F3Q

08

F4Q

08F1

Q09

F2Q

09F3

Q09

F4Q

09

F1Q

10F2

Q10

BOB BOI SBI Axis ICBK HDBK



10.0%

22.0%

34.0%

46.0%

58.0%

70.0%

F1Q

04

F2Q

04F3

Q04

F4Q

04F1

Q05

F2Q

05F3

Q05

F4Q

05

F1Q

06F2

Q06

F3Q

06F4

Q06

F1Q

07F2

Q07

F3Q

07F4

Q07

F1Q

08F2

Q08

F3Q

08F4

Q08

F1Q

09

F2Q

09F3

Q09

F4Q

09F1

Q10

F2Q

10



Exhibit 54 Cost/ Income …

25.0%

35.0%

45.0%

55.0%

65.0%

75.0%

F1Q

04

F2Q

04F3

Q04

F4Q

04

F1Q

05F2

Q05

F3Q

05F4

Q05

F1Q

06

F2Q

06F3

Q06

F4Q

06

F1Q

07F2

Q07

F3Q

07

F4Q

07F1

Q08

F2Q

08

F3Q

08F4

Q08

F1Q

09

F2Q

09F3

Q09

F4Q

09

F1Q

10F2

Q10



Exhibit 55 LLP/ loans (Annualized) …

-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

F1Q

06

F2Q

06

F3Q

06

F4Q

06

F1Q

07

F2Q

07

F3Q

07

F4Q

07

F1Q

08

F2Q

08

F3Q

08

F4Q

08

F1Q

09

F2Q

09

F3Q

09

F4Q

09

F1Q

10

F2Q

10



Exhibit 56 ROA …

0.4%

0.7%

1.0%

1.2%

1.5%

1.8%F1

999

F200

0

F200

1

F200

2

F200

3

F200

4

F200

5

F200

6

F200

7

F200

8

F200

9

SOE Banks Pvt Banks



4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

F2Q

07

F3Q

07

F4Q

07

F1Q

08

F2Q

08

F3Q

08

F4Q

08

F1Q

09

F2Q

09

F3Q

09

F4Q

09

F1Q

10

F2Q

10

BOI SBI Axis ICBK HDBK


15



Indonesia

Exhibit 58 1-yr Fwd Consensus P/E …

0.0

5.0

10.0

15.0

20.0

25.0

Dec-01 Jul-02 Feb-03 Sep-03 Apr-04 Nov-04 Jun-05 Jan-06 Aug-06 Mar-07 Oct-07 May-08 Dec-08 Jul-09

BCA BRI Danamon Mandiri


0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

Dec-01 Jul-02 Feb-03 Sep-03 Apr-04 Nov-04 Jun-05 Jan-06 Aug-06 Mar-07 Oct-07 May-08 Dec-08 Jul-09

BCA BRI Danamon Mandiri

Source: FactSet, Morgan Stanley Research Exhibit 60 Indonesia Interest Rates … policy rates on hold

0.0%

2.5%

5.0%

7.5%

10.0%

12.5%

15.0%

17.5%

20.0%

Jan-00 Sep-00 May-01 Jan-02 Sep-02 May-03 Jan-04 Sep-04 May-05 Jan-06 Sep-06 May-07 Jan-08 Sep-08 May-09

Inflation Policy rate 10yr govt bond

Source: CEIC, Bloomberg, Morgan Stanley Research

Exhibit 61 System Loan & Deposit Growth … loan growth expected to pick up in 4Q09

-20%

-10%

0%

10%

20%

30%

40%

50%

Dec-01 Aug-02 Apr-03 Dec-03 Aug-04 Apr-05 Dec-05 Aug-06 Apr-07 Dec-07 Aug-08 Apr-09

Loans Deposits

Source: CEIC, Morgan Stanley Research Exhibit 62 Indonesia Bank Credit to GDP … underpenetrated

0%

10%

20%

30%

40%

50%

60%

70%

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Bank Credit: Corporates

Bank Credit: Household

% of GDP

Source: CEIC, BI, Morgan Stanley Research Exhibit 63 Indonesia Real GDP Growth … sustainable growth rate expected to increase to 6.5-7% over next 3-4yrs

-

1

2

3

4

5

6

7

8

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

Real GDP, %YoY, 5 Years Trailing Average


16



Exhibit 64 NIM …

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

1Q05 3Q05 1Q06 3Q06 1Q07 3Q07 1Q08 3Q08 1Q09 3Q09

(%) BCA BRI Danamon Mandiri



5.0

10.0

15.0

20.0

25.0

30.0

35.0

1Q05 3Q05 1Q06 3Q06 1Q07 3Q07 1Q08 3Q08 1Q09 3Q09




0

1

2

3

4

5

6

7

8

1Q05 3Q05 1Q06 3Q06 1Q07 3Q07 1Q08 3Q08 1Q09 3Q09




-2.0

-1.00.0

1.0

2.0

3.0

4.0

5.0

6.07.0

8.0

1Q05 3Q05 1Q06 3Q06 1Q07 3Q07 1Q08 3Q08 1Q09 3Q09



Exhibit 68 ROA …

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

1Q05 3Q05 1Q06 3Q06 1Q07 3Q07 1Q08 3Q08 1Q09 3Q09

(%)BCA BRI Danamon Mandiri



8

10

12

14

16

18

20

22

24

26

1Q05 3Q05 1Q06 3Q06 1Q07 3Q07 1Q08 3Q08 1Q09 3Q09



17



Thailand Exhibit 70 1-yr Fwd Consensus P/E …

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0


BBL SCB KBANK KTB TMB

Source: Datastream, Morgan Stanley Research Exhibit 71 Historical P/B …

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0


BBL SCB KBANK KTB TMB

Source: Datastream, Morgan Stanley Research Exhibit 72 Thailand Interest Rates … gradual rate rises expected from 2H10. Long term spreads widening.

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Jan-99

Sep-99

May-00

Jan-01

Sep-01

May-02

Jan-03

Sep-03

May-04

Jan-05

Sep-05

May-06

Jan-07

Sep-07

May-08

Jan-09

Sep-09

10 year bonds 90 day bills BoT policy rate%

Source: CEIC, BOT, Morgan Stanley Research

Exhibit 73 Thailand System Loan & Deposit Growth …

-5%

0%

5%

10%

15%

20%

25%

Dec-04 Apr-05 Aug-05 Dec-05 Apr-06 Aug-06 Dec-06 Apr-07 Aug-07 Dec-07 Apr-08 Aug-08 Dec-08 Apr-09 Aug-09

Credit growth Deposit growth

Source: BOT, Morgan Stanley Research Exhibit 74 Thailand GDP … net external balance turns positive

-12

-9

-6

-3

0

3

6

9

Mar

-05

Jun-

05

Sep

-05

Dec

-05

Mar

-06

Jun-

06

Sep

-06

Dec

-06

Mar

-07

Jun-

07

Sep

-07

Dec

-07

Mar

-08

Jun-

08

Sep

-08

Dec

-08

Mar

-09

Jun-

09

Sep

-09

Priv ate Consumption (%-pt) Gov ernment Consumption(%-pt)GCF (%-pt) Net External Balance (%-pt)GDP (YoY%)

Source: CEIC, Morgan Stanley Research Exhibit 75 Thailand Motor Vehicle Sales … picking up

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

Jan-

93

Dec

-93

Nov

-94

Oct

-95

Sep-

96

Aug-

97

Jul-9

8

Jun-

99

May

-00

Apr-

01

Mar

-02

Feb-

03

Jan-

04

Dec

-04

Nov

-05

Oct

-06

Sep-

07

Aug-

08

Jul-0

9

Motor Vehicle Sales, %YoY, 3MMA

Motor Vehicle Sales, %YoY


18



Exhibit 76 Net Interest Spread …

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

Mar-03 Sep-03 Mar-04 Sep-04 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09

BBL SCB Kbank KTB TMB



0%

5%

10%

15%

20%

25%

30%

35%

40%

45%





1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%





(40)

0

40

80

120

160

200

240




Exhibit 80 ROA …

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%





4%

5%

6%

7%

8%

9%

10%

11%

12%

13%

14%




19



Malaysia Exhibit 82 1-yr Fwd Consensus P/E …

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

22.0

24.0

26.0

Jan-00 Oct-00 Jul-01 Apr-02 Jan-03 Oct-03 Jul-04 Apr-05 Jan-06 Oct-06 Jul-07 Apr-08 Jan-09 Oct-09

MBBM CIMB PUBM HLBB


0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

Jan-95 Feb-96 Mar-97 Apr-98 May-99 Jun-00 Jul-01 Aug-02 Sep-03 Oct-04 Nov-05 Dec-06 Jan-08 Feb-09

MBBM CIMB PUBM HLBB

Source: FactSet, Morgan Stanley Research Exhibit 84 Malaysia Interest Rates … stable with policy rate unchanged at 2.00% since Feb 2009

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Jan-97 Nov-97 Sep-98 Jul-99 May-00 Mar-01 Jan-02 Nov-02 Sep-03 Jul-04 May-05 Mar-06 Jan-07 Nov-07 Sep-08 Jul-09

3mth interbank Base Lending Rate 3mth FD rate Policy rate

%

Source: CEIC, Datastream, Morgan Stanley Research

Exhibit 85 System Loan & Deposit Growth … loan growth slowing (7.5% in October)

-10%

-5%

0%

5%

10%

15%

20%

Dec-98 Sep-99 Jun-00 Mar-01 Dec-01 Sep-02 Jun-03 Mar-04 Dec-04 Sep-05 Jun-06 Mar-07 Dec-07 Sep-08 Jun-09

Deposit growth Credit growth

Source: BNM, Morgan Stanley Research Exhibit 86 Malaysia GDP Growth … facing a structural decline?

-15

-10

-5

0

5

10

15

Mar

-88

Mar

-90

Mar

-92

Mar

-94

Mar

-96

Mar

-98

Mar

-00

Mar

-02

Mar

-04

Mar

-06

Mar

-08

GDP (%YoY)

Trend growth: 9.3% (Mar88 - Jun97) Trend growth: 6.2% (Sep02 - Jun98)

Source: CEIC, Morgan Stanley Research Exhibit 87 Malaysia Property Prices … stagnant

90

100

110

120

130

140

150

Mar

-99

Mar

-00

Mar

-01

Mar

-02

Mar

-03

Mar

-04

Mar

-05

Mar

-06

Mar

-07

Mar

-08

Mar

-09

House Price Index: OverallHouse Price Index: Terraced HouseHouse Price Index: High Rise UnitHouse Price Index: Detached HouseHouse Price Index: Semi-Detached House


20



Exhibit 88 NIM …

1.50

1.75

2.00

2.25

2.50

2.75

3.00

3.25

3.50

1Q06

2Q06

3Q06

4Q061Q07

2Q07

3Q07

4Q07

1Q082Q

083Q

084Q

081Q09

2Q093Q

09

CIMB HLBB MBBM PUBM%


Exhibit 89 Core Non Interest Income/ Total Income …

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

55.0

1Q062Q06

3Q06

4Q06

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

3Q084Q08

1Q092Q09

3Q09




0.50

1.00

1.50

2.00

2.50

3.00

3.50

1Q06

2Q063Q

064Q

061Q

072Q

073Q

074Q

071Q

082Q08

3Q08

4Q08

1Q09

2Q09

3Q09



Exhibit 91 LLP/ Loans …

-0.50

0.00

0.50

1.00

1.50

2.00

1Q062Q

063Q06

4Q06

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

3Q08

4Q08

1Q092Q

093Q

09



Exhibit 92 ROA …

0.0

0.5

1.0

1.5

2.0

2.5

1Q062Q

063Q

064Q

061Q

072Q

073Q

074Q07

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09




6.0

7.0

8.0

9.0

10.0

11.0

12.0

13.0

14.0

15.0

16.0

1Q06

2Q06

3Q06

4Q06

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09



21



Philippines Exhibit 94 1yr Fwd Consensus P/E …

6.0

10.0

14.0

18.0

22.0

26.0

Jan-00 Oct-00 Jul-01 Apr-02 Jan-03 Oct-03 Jul-04 Apr-05 Jan-06 Oct-06 Jul-07 Apr-08 Jan-09 Oct-09

MBT BPI BDO


0.0

1.0

2.0

3.0

4.0

5.0

6.0

Oct-95 Sep-96 Aug-97 Jul-98 Jun-99 May-00 Apr-01 Mar-02 Feb-03 Jan-04 Dec-04 Nov-05 Oct-06 Sep-07 Aug-08 Jul-09

MBT BPI BDO

Source: FactSet, Morgan Stanley Research Exhibit 96 Philippines Key Interest Rates …

0.00

5.00

10.00

15.00

20.00

25.00

Mar-97 Feb-98 Jan-99 Dec-99 Nov-00 Oct-01 Sep-02 Aug-03 Jul-04 Jun-05 May-06 Apr-07 Mar-08 Feb-09

Overnight RP Rate Avg Savings Rate 3m FD Avg Lending Rate

%

Source: BSP, CIEC, Morgan Stanley Research

Exhibit 97 Philippines Universal & Commercial Banks Loan & Deposit Growth … slowing

-5%

0%

5%

10%

15%

20%

25%

30%

Jan-02 Aug-02 Mar-03 Oct-03 May-04 Dec-04 Jul-05 Feb-06 Sep-06 Apr-07 Nov-07 Jun-08 Jan-09 Aug-09

Loans Deposits

Source: BSP, CEIC, Morgan Stanley Research Exhibit 98 Philippines Motor Vehicle Sales … improving

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Jan-96 Oct-96 Jul-97 Apr-98 Jan-99 Oct-99 Jul-00 Apr-01 Jan-02 Oct-02 Jul-03 Apr-04 Jan-05 Oct-05 Jul-06 Apr-07 Jan-08 Oct-08 Jul-09

Units

Source: CEIC, Morgan Stanley Research Exhibit 99 Worker Remittances … continues to defy global external weakness – up 4% YTD (US$13bn)

0

200

400

600

800

1,000

1,200

1,400

1,600

Jan-95 Jul-96 Jan-98 Jul-99 Jan-01 Jul-02 Jan-04 Jul-05 Jan-07 Jul-08

Remittances 24 month rolling avgUS$m


22




1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%

6.0%

6.5%

Mar-04 Sep-04 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09

MBT BPI BDO

BDO merger with EPCIB


Exhibit 101 Non Interest Income (ex FX & Trading)/ Total Income

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%


MBT BPI BDO



2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%

6.0%


MBT BPI BDO

BDO merger with EPCIB


Exhibit 103 LLP/ Net Loans (Not Annualized) …

-40

-20

0

20

40

60

80

100

120

140

160

Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09

MBT BPI BDO

bps BDO merger with EPCIB


Exhibit 104 ROA (ex FX & Trading) …

-1.5%

-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%


MBT BPI BDO


Exhibit 105 Tier 1 Ratio (latest reported, solo bank level) …

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

MBT BPI BDO Source: Company data, Morgan Stanley Research

23



Pakistan Exhibit 106 1-yr Fwd Consensus P/E …

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

Apr-07 Jun-07 Aug-07 Oct-07 Dec-07 Feb-08 Apr-08 Jun-08 Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09 Dec-09

MCB UBL NBP


0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Jan-00 Sep-00 May-01 Jan-02 Sep-02 May-03 Jan-04 Sep-04 May-05 Jan-06 Sep-06 May-07 Jan-08 Sep-08 May-09

MCB UBL NBP

Source: FactSet, Morgan Stanley Research Exhibit 108 Pakistan Lending & Deposit Rates …

1.0

3.0

5.0

7.0

9.0

11.0

13.0

15.0

17.0

Jan-04 Jun-04 Nov-04 Apr-05 Sep-05 Feb-06 Jul-06 Dec-06 May-07 Oct-07 Mar-08 Aug-08 Jan-09 Jun-09

Marginal deposit rate (WA) Marginal loan rate (WA)

%

Source: SBP, Morgan Stanley Research

Exhibit 109 Pakistan System Loan & Deposit Growth …

0%

5%

10%

15%

20%

25%

30%

35%

40%

Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09

Deposits, YoY% chg Loans, YoY% chg

Source: SBP, CEIC, Morgan Stanley Research Exhibit 110 Pakistan Policy Rate … on hold

2

4

6

8

10

12

14

16

18

20

22

Feb-92 Apr-93 Jun-94 Aug-95 Oct-96 Dec-97 Feb-99 Apr-00 Jun-01 Aug-02 Oct-03 Dec-04 Feb-06 Apr-07 Jun-08 Aug-09

%

Source: CEIC, Morgan Stanley Research Exhibit 111 Pakistan Foreign Investment … +ve portfolio flows

-400

-200

0

200

400

600

800

1,000

1,200

1,400

Dec-01 Sep-02 Jun-03 Mar-04 Dec-04 Sep-05 Jun-06 Mar-07 Dec-07 Sep-08 Jun-09

FDI Portfolio

US


24




2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%


MCB NBP UBL



10%

15%

20%

25%

30%

35%

40%

45%

50%


MCB NBP UBL



0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%


MCB NBP UBL


Exhibit 115 LLP/ Loans (Not Annualized) …

-20

0

20

40

60

80

100

120

Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09

MCB NBP UBL

SBP provision requirement amendment


Exhibit 116 ROA …

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%


MCB NBP UBL



0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

2004 2005 2006 2007 2008

MCB NBP UBL


25



Korea Exhibit 118 1-yr Fwd Consensus P/E … (Avg of Korean Banks)

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

Sep

-04

Dec

-04

Mar

-05

Jun-

05

Sep

-05

Dec

-05

Mar

-06

Jun-

06

Sep

-06

Dec

-06

Mar

-07

Jun-

07

Sep

-07

Dec

-07

Mar

-08

Jun-

08

Sep

-08

Dec

-08

Mar

-09

Jun-

09

Sep

-09

1yr Forward PE Median

(x)

Source: Company data, FactSet, Morgan Stanley Research Exhibit 119 Historical Consensus P/B … (Avg of Korean Banks)

-

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

Sep-

00

Mar

-01

Sep-

01

Mar

-02

Sep-

02

Mar

-03

Sep-

03

Mar

-04

Sep-

04

Mar

-05

Sep-

05

Mar

-06

Sep-

06

Mar

-07

Sep-

07

Mar

-08

Sep-

08

Mar

-09

Sep-

09

1yr Forward PB Median

(x)

Source: Company data, FactSet, Morgan Stanley Research Exhibit 120 Korea Yield Curve …

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09

1-yr Debenture 1-yr Treasury 3-yr Treasury CD 91days CP 91days

Source: KOSCOM, Morgan Stanley Research

Exhibit 121 Korea System Loan & Deposit Growth …

-10%

0%

10%

20%

30%

40%

50%

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Loan YoY Deposit YoY

Source: BOK, Morgan Stanley Research Exhibit 125 Banking NIM Trend to Show Continued Upturn

1.0%

1.5%

2.0%

2.5%

3.0%

1Q04 3Q04 1Q05 3Q05 1Q06 3Q06 1Q07 3Q07 1Q08 3Q08 1Q09 3Q090%

1%

2%

3%

4%

5%

6%

NIM (LHS) Policy Rate (RHS)


Exhibit 126 Foreign Ownership of Banks Has Recovered

50

55

60

65

70

75

80

Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09

(%

Source: WISEfn, Company Data, Morgan Stanley Research

26



Exhibit 127 NIM …

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

2Q03 2Q04 2Q05 2Q06 2Q07 2Q08 2Q09

Kookmin Shinhan Woori Hana KEB IBK Daegu Busan

Source: Company data, Morgan Stanley Research Exhibit 128 Non-interest income / Net Operating Revenue …

0.20%

0.70%

1.20%

1.70%

2.20%

2.70%

3.20%

2Q03 2Q04 2Q05 2Q06 2Q07 2Q08 2Q09


Source: Company data, Morgan Stanley Research Exhibit 129 Cost / Average Assets …

0.1%

0.6%

1.1%

1.6%

2.1%

2.6%

3.1%

2Q03 2Q04 2Q05 2Q06 2Q07 2Q08 2Q09



Exhibit 130 LLP / Loans (Annualized) …

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

2Q03 2Q04 2Q05 2Q06 2Q07 2Q08 2Q09Kookmin Shinhan Woori Hana KEB IBK Daegu Busan

Source: Company data, Morgan Stanley Research Exhibit 131 ROAA …

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

2Q03 2Q04 2Q05 2Q06 2Q07 2Q08 2Q09Kookmin Shinhan Woori Hana KEB IBK Daegu Busan

Source: Company data, Morgan Stanley Research Exhibit 132 Tier 1 Ratio …

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

KFG* SFG* WFG* HFG* KEB IBK DGB BSB Note: *Group based for KFG, SFG, WFG and HFG Source: Company data, Morgan Stanley Research

27



Taiwan Exhibit 133 1-yr Fwd Consensus P/E …

5

10

15

20

25

30

35

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

(x) Large private banks Midcap private banks State banks


0.0

0.5

1.0

1.5

2.0

2.5

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

(x)Large private banks Midcap private banks State banks

Source: FactSet, Morgan Stanley Research Exhibit 135 Taiwan Yield Curve …

-0.5

0.5

1.5

2.5

3.5

4.5

5.5

6.5

Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08

10yr Gov't Bond Yield minus Interbank Rate10yr Gov't Bond Yield (secondary market)Interbank Rate

%

Source: CBC, GreTai Securities Market, Morgan Stanley Research

Exhibit 136 Key System Loan and Deposit Growth …

-5%

0%

5%

10%

15%

20%

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

YoY Deposit Growth YoY Loan Growth

Source: CEIC, Morgan Stanley Research Exhibit 137 Private Corporate Loan Demand Remaining Weak

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Jun-0

6

Sep-06

Dec-06

Mar-07

Jun-0

7

Sep-07

Dec-07

Mar-08

Jun-0

8

Sep-08

Dec-08

Mar-09

Jun-0

9

Sep-09

Total Loan Mortgage Private Corporate Loan

Source: CBC, Morgan Stanley Research Exhibit 138 Low-cost Demand Deposit Increasing Continuously

Demand Deposit as a % of Total Deposit

30%

33%

35%

38%

40%

43%

45%

Oct-07

Dec-07

Feb-08

Apr-08

Jun-0

8

Aug-08

Oct-08

Dec-08

Feb-09

Apr-09

Jun-0

9

Aug-09

Oct-09

Source: CBC, Morgan Stanley Research.

28



Exhibit 139 NIM …

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09

Fubon E.Sun Mega Taishin SinoPac Chinatrust First



0%

10%

20%

30%

40%

50%

60%

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09




0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09




-1%

0%

1%

2%

3%

4%

5%

1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09

E.Sun Mega Taishin SinoPac Chinatrust First


Exhibit 143 ROA …

-3%

-2%

-1%

0%

1%

2%

1Q02 1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09




5%

7%

9%

11%

13%

15%

17%

1Q02 1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09



29



Asia/Pacific Financial Services Team Team Leaders Anil Agarwal Matthew Wilson Australia Banks Richard Wiles +61 (0)2 9770 1537 [email protected]

Glen D’Souza CFA 61 (0)2 9770 1658 Glen.D'[email protected]

David Shi 61 (0)2 9770 1187 [email protected]

Insurance & Diversified Finanicals Scott Russell +61 (0)2 9770 1536 [email protected]

China Banks & Insurance Minyan Liu CFA +852 2848 6729 [email protected]

Eric Mak +852 2239 1568 [email protected]

Edmond Law +852 2239 1830 [email protected]

Hong Kong Banks Anil Agarwal +852 2848 5842 [email protected]

Daniel Shum +852 2848 8168 [email protected]

India Banks & Diversified Financials Anil Agarwal +852 2848 5842 [email protected]

Mihir Sheth +91 22 2209 7073 [email protected]

Mansi Shah +91 22 2209 7820 [email protected]

Singapore/Thailand/ Philippines/ Pakistan Banks Matthew Wilson CFA +65 6834 6746 [email protected]

Samantha Horton +65 6834-8975 [email protected]

Malaysia & Indonesia Banks Roger Lum +65 6834 6743 [email protected]

Samantha Horton +65 6834-8975 [email protected]

South Korea Banks & Insurance Joon Seok +822 399 4934 [email protected]

Gil Woo Lee +822 399 4935 [email protected]

Taiwan Banks & Insurance Lily Choi +852 2848 6564 [email protected]

Bruce Chou +886 2 2730 2875 [email protected]

30



Morgan Stanley ModelWare is a proprietary analytic framework that helps clients uncover value, adjusting for distortions and ambiguities created by local accounting regulations. For example, ModelWare EPS adjusts for one-time events, capitalizes operating leases (where their use is significant), and converts inventory from LIFO costing to a FIFO basis. ModelWare also emphasizes the separation of operating performance of a company from its financing for a more complete view of how a company generates earnings.

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For important disclosures, stock price charts and equity rating histories regarding companies that are the subject of this report, please see the Morgan Stanley Research Disclosure Website at www.morganstanley.com/researchdisclosures, or contact your investment representative or Morgan Stanley Research at 1585 Broadway, (Attention: Research Management), New York, NY, 10036 USA. Analyst Certification The following analysts hereby certify that their views about the companies and their securities discussed in this report are accurately expressed and that they have not received and will not receive direct or indirect compensation in exchange for expressing specific recommendations or views in this report: Matthew Wilson. Unless otherwise stated, the individuals listed on the cover page of this report are research analysts. Global Research Conflict Management Policy Morgan Stanley Research has been published in accordance with our conflict management policy, which is available at www.morganstanley.com/institutional/research/conflictpolicies. Important US Regulatory Disclosures on Subject Companies As of November 30, 2009, Morgan Stanley beneficially owned 1% or more of a class of common equity securities of the following companies covered in Morgan Stanley Research: CIMB Group, First Financial, Fubon Financial Holdings, Industrial and Commercial Bank of China, PT Bank Central Asia, PT Bank Rakyat Indonesia, Shinhan Financial Group. As of November 30, 2009, Morgan Stanley held a net long or short position of US$1 million or more of the debt securities of the following issuers covered in Morgan Stanley Research (including where guarantor of the securities): China Construction Bank Corp., CIMB Group, Commonwealth Bk Aust, Fubon Financial Holdings, Maybank, Nat Aust Bank, Shinhan Financial Group, State Bank of India, UOB, Woori Finance Holdings. Within the last 12 months, Morgan Stanley managed or co-managed a public offering (or 144A offering) of securities of Commonwealth Bk Aust, DBS Group Holdings, Woori Finance Holdings. Within the last 12 months, Morgan Stanley has received compensation for investment banking services from Commonwealth Bk Aust, DBS Group Holdings, Nat Aust Bank, Shinhan Financial Group. In the next 3 months, Morgan Stanley expects to receive or intends to seek compensation for investment banking services from AXIS Bank, Bangkok Bank, China Construction Bank Corp., Commonwealth Bk Aust, Dah Sing Financial, DBS Group Holdings, First Financial, Fubon Financial Holdings, Industrial and Commercial Bank of China, Maybank, Nat Aust Bank, PT Bank Central Asia, Shinhan Financial Group, State Bank of India, UOB, Woori Finance Holdings. Within the last 12 months, Morgan Stanley & Co. Incorporated has received compensation for products and services other than investment banking services from Bank of the Philippine Islands, China Construction Bank Corp., CIMB Group, Commonwealth Bk Aust, Dah Sing Financial, DBS Group Holdings, First Financial, Fubon Financial Holdings, Industrial and Commercial Bank of China, Maybank, Metropolitan Bank & Trust Company, Nat Aust Bank, PT Bank Central Asia, Shinhan Financial Group, State Bank of India, UOB, Woori Finance Holdings. Within the last 12 months, Morgan Stanley has provided or is providing investment banking services to, or has an investment banking client relationship with, the following company: AXIS Bank, Bangkok Bank, China Construction Bank Corp., Commonwealth Bk Aust, Dah Sing Financial, DBS Group Holdings, First Financial, Fubon Financial Holdings, Industrial and Commercial Bank of China, Maybank, Nat Aust Bank, PT Bank Central Asia, Shinhan Financial Group, State Bank of India, UOB, Woori Finance Holdings. 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The equity research analysts or strategists principally responsible for the preparation of Morgan Stanley Research have received compensation based upon various factors, including quality of research, investor client feedback, stock picking, competitive factors, firm revenues and overall investment banking revenues. The fixed income research analysts or strategists principally responsible for the preparation of Morgan Stanley Research have received compensation based upon various factors, including quality, accuracy and value of research, firm profitability or revenues (which include fixed income trading and capital markets profitability or revenues), client feedback and competitive factors. Fixed Income Research analysts' or strategists' compensation is not linked to investment banking or capital markets transactions performed by Morgan Stanley or the profitability or revenues of particular trading desks. 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Overweight, Equal-weight, Not-Rated and Underweight are not the equivalent of buy, hold and sell. Investors should carefully read the definitions of all ratings used in Morgan Stanley Research. In addition, since

31



Morgan Stanley Research contains more complete information concerning the analyst's views, investors should carefully read Morgan Stanley Research, in its entirety, and not infer the contents from the rating alone. In any case, ratings (or research) should not be used or relied upon as investment advice. An investor's decision to buy or sell a stock should depend on individual circumstances (such as the investor's existing holdings) and other considerations. Global Stock Ratings Distribution (as of November 30, 2009) For disclosure purposes only (in accordance with NASD and NYSE requirements), we include the category headings of Buy, Hold, and Sell alongside our ratings of Overweight, Equal-weight, Not-Rated and Underweight. Morgan Stanley does not assign ratings of Buy, Hold or Sell to the stocks we cover. Overweight, Equal-weight, Not-Rated and Underweight are not the equivalent of buy, hold, and sell but represent recommended relative weightings (see definitions below). To satisfy regulatory requirements, we correspond Overweight, our most positive stock rating, with a buy recommendation; we correspond Equal-weight and Not-Rated to hold and Underweight to sell recommendations, respectively. Coverage Universe Investment Banking Clients (IBC)

Stock Rating Category Count % of Total Count

% of Total IBC

% of Rating Category

Overweight/Buy 915 38% 284 41% 31%Equal-weight/Hold 1077 45% 312 45% 29%Not-Rated/Hold 25 1% 2 0% 8%Underweight/Sell 384 16% 89 13% 23%Total 2,401 687 Data include common stock and ADRs currently assigned ratings. An investor's decision to buy or sell a stock should depend on individual circumstances (such as the investor's existing holdings) and other considerations. Investment Banking Clients are companies from whom Morgan Stanley or an affiliate received investment banking compensation in the last 12 months. Analyst Stock Ratings Overweight (O or Over) - The stock's total return is expected to exceed the total return of the relevant country MSCI Index, on a risk-adjusted basis over the next 12-18 months. Equal-weight (E or Equal) - The stock's total return is expected to be in line with the total return of the relevant country MSCI Index, on a risk-adjusted basis over the next 12-18 months. Not-Rated (NR) - Currently the analyst does not have adequate conviction about the stock's total return relative to the relevant country MSCI Index on a risk-adjusted basis, over the next 12-18 months. Underweight (U or Under) - The stock's total return is expected to be below the total return of the relevant country MSCI Index, on a risk-adjusted basis, over the next 12-18 months. Unless otherwise specified, the time frame for price targets included in Morgan Stanley Research is 12 to 18 months. Analyst Industry Views Attractive (A): The analyst expects the performance of his or her industry coverage universe over the next 12-18 months to be attractive vs. the relevant broad market benchmark, as indicated below. In-Line (I): The analyst expects the performance of his or her industry coverage universe over the next 12-18 months to be in line with the relevant broad market benchmark, as indicated below. Cautious (C): The analyst views the performance of his or her industry coverage universe over the next 12-18 months with caution vs. the relevant broad market benchmark, as indicated below. Benchmarks for each region are as follows: North America - S&P 500; Latin America - relevant MSCI country index or MSCI Latin America Index; Europe - MSCI Europe; Japan - TOPIX; Asia - relevant MSCI country index. . Stock Price, Price Target and Rating History (See Rating Definitions)

32



33



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34



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Additional information on recommended securities/instruments is available on request.

© 2009 Morgan Stanley


Industry Coverage:Pakistan Banks

Company (Ticker) Rating (as of)Price* (12/14/2009)

Matthew S Wilson, CFA MCB Bank Ltd (MCB.KA) ++ PKR217.12United Bank Limited (UBL.KA) O (08/28/2007) PKR59.62

Stock Ratings are subject to change. Please see latest research for each company. * Historical prices are not split adjusted.

Industry Coverage:Philippines Banks

Company (Ticker) Rating (as of)Price* (12/14/2009)

Matthew S Wilson, CFA Banco De Oro (BDO.PS) E (05/29/2009) PP39Bank of the Philippine Islands (BPI.PS)

O (05/29/2009) PP48

Metropolitan Bank & Trust Company (MBT.PS)

O (05/29/2009) PP47

Stock Ratings are subject to change. Please see latest research for each company. * Historical prices are not split adjusted.

The Americas 1585 Broadway New York, NY 10036-8293 United States Tel: +1 (1) 212 761 4000

Europe 20 Bank Street, Canary Wharf London E14 4AD United Kingdom Tel: +44 (0) 20 7 425 8000

Japan 4-20-3 Ebisu, Shibuya-ku Tokyo 150-6008 Japan Tel: +81 (0) 3 5424 5000

Asia/Pacific Three Exchange Square Central Hong Kong Tel: +852 2848 5200

morgan stanley asia pacific banks december data dashboard

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