Slide 1: Investor Presentation 3rd Quarter 2012 Financial Results
Investor Presentation 3rd Quarter 2012 Financial Results Mr. Kellee Kam Group Managing Director RHB Banking Group 22 November 2012
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This material is prepared for general circulation. Any recommendation or view contained in this document does not have regard to the specific investment objectives, financial situation and the particular needs of any specific audience. The content furthermore is believed t
Slide 3: Agenda
AGENDA Executive Summary 3rd Quarter 2012 Financial Results Key Business Highlights Acquisition of OSK Investment Bank Summary
Slide 4: Key Take-Aways: 3rd Quarter 2012 Results
Key Take-Aways: 3rd Quarter 2012 Results PBT up 8.5% y-o-y to RM1.8 bil 3rd Quarter Net profit up 8.8% y-o-y to RM1.4 bil 2012 Results EPS at 62.1 sen, up 6.7% Annualised ROE at 15.0% and ROA at 1.1% Total assets expanded by 11.0% to RM169.5 bil Revenue and loans growth recorded in all s
Slide 5: RHB Banking Group Scorecard 2012
RHB Banking Group Scorecard 2012 Top level indicators Target 2012 Sept 2012 Achievement ROE >14.0% 15.0%N1 ROA 1.2% 1.1%N1 Gross Impaired Loans 3.0% 3.1% Ratio Loans Growth >12% 12.6%N1 Deposits Growth >12% 11.3%N1 Cost to Income Ratio <44% 45.5% International Contribution 10% 5% N1: Annualised bett
Slide 6: Agenda
AGENDA Executive Summary 3rd Quarter 2012 Financial Results Key Business Highlights Acquisition of OSK Investment Bank Summary
Slide 7: Financial Results
Financial Results On a year-on-year basis: Q-o-Q Y-o-Y Q3 Q2 9M 9M RM mil Change Change Higher other operating income mainly due to higher 2012 2012 2012 2011N1 % % trading and investment gains, higher fee income and Net Interest Income 745 732 2 2,186 2,129 3 MTM gain on derivatives Other Operati
Slide 8: Key Underlying Profit Drivers
Key Underlying Profit Drivers Net Interest Income (+3%) Other Operating Income +(16%) RM mil RM mil 52 82 - 40 374 - 317 46 - 11 2,186 798 927 2,129 9M 2011 Interest income Interest expense 9M 2012 9M 2011 Fee Gain on MTM gain on Net forex Others 9M 2012 income securities derivatives gain ♦ NII high
Slide 9: Financial Position
Financial Position Total assets expanded by 11% mainly due to Change increase in gross loans and investment portfolio by for 9M RM mil Sept 2012 Dec 2011N1 9% and 10% respectively 2012 % Gross loans up 9% in 9M 2012 Total Assets 169,479 152,628 11 • Domestic loans up 9% and overseas loans up Tot
Slide 10: Loans, Advances and Financing
Loans, Advances and Financing Change Gross Loans by Purpose: Composition Y-o-Y RM mil Sept Dec Sept for 9M Change 2012 2011N1 2011N1 2012 % 100% % Working Capital 23,945 20,360 21,343 18 12 90% 21% 23% Purchase of Residential 21,668 20,604 20,303 5 7 80% Property Purchase of Transport 70% 11,276 11,
Slide 11: Loans, Advances and Financing by SBG
Loans, Advances and Financing by SBG Change for Y-o-Y RM mil Sept 2012 Dec 2011N1 Sept 2011N1 9M 2012 Change % % Retail 41,523 40,688 40,366 2 3 Business Banking 11,634 10,519 10,871 11 7 CIB 32,316 28,788 26,312 12 23 Islamic 15,957 13,060 12,923 22 23 Global Financial Banking 5,207 4,383 4,240 19
Slide 12: Loans Profile
Loans Profile Gross Loans by Type of Customer Gross Loans by Interest/Profit Rate Sensitivity 2% 1% 1% 7% 5% 6% 6% Fixed Rate 6% 7% 30% 5% 11% Variable 11% 10% Rate 70% 36% 34% 28% 27% 26% 29% Gross Loans by Strategic Business Group 17% 16% 13% 12% 15% 11% 15% 5% 39% 43% 44% 45% 44% 11% 41% 41% 8% (
Slide 13: Customers Deposits
Customers Deposits Customers Deposits Customers Deposits : Composition Change Y-o-Y Sept Dec Sept for 100% RM mil Change 5% 5% 2012 2011 2011 9M 2012 % % 90% Fixed Deposits 95,650 87,946 82,951 9 15 19% 19% 80% of which: MMTD 22,490 23,259 26,628 -3 -16 Demand Deposits 23,200 21,436 20,515 8 13 70%
Slide 14: Loans and Deposits
Loans and Deposits Loans Customers Deposits RM bil RM bil 22% 33% 16% 23% 23% 20% 16% 13% 32% 13% 15%15% 12% 15% 9% 11% 12% 11% 11% 13% 12% 7% 14% 10% 14% 12% 9% 14% 12% 10% 7% 1% 8% -2% -4% 115.9 125.7 97.4 106.6 1% 83.7 94.4 75.8 74.0 84.8 63.2 69.6 56.8 2007 2008 2009 2010 2011^ Sept 2012* 2007 2
Slide 15: Asset Quality
Asset Quality Gross Impaired Loans Ratio decreased by 0.47% to 3.12% Gross Impaired Loans Ratio by Key Purpose (%) 2010 2011^ Sept 2012 4.39 3.59 3.59 6.6 6.1 5.2 4.12 3.33 Working Capital 3.90 3.12 3.66 3.44 3.36 3.17 6.2 5.3 4.6 2.89 2.80 Purchase of Residential 2.68 2.54 Property 2.23 2.22 Dec 10
Slide 16: Capital Position
Capital Position RHB Capital RHB Bank Times RM bil 0.8 152% 15.8% 16.0% 149% 150% 20.0 14.6% 14.9% 17% 144% 13.8% 141% 12.3% 12.1% 0.7 0.63 11.5% 11.5% 13% 15.0 10.5% 0.6 0.54 0.54 130% 0.50 10.1 9.9 9% 0.47 9.3 9.3 0.5 10.0 7.9 5% 0.4 4.3 4.3 5.0 3.3 3.6 3.5 0.3 1% 0.2 80% 0.0 -3% Dec 10 Dec 11 Mar
Slide 17: Capital Position - RHB Bank Group
Capital Position - RHB Bank Group RM mil Sept 2012 Dec 2011 Main development in 9M 2012: Total equityN1 10,940 10,011 o Issuance of RM750 million sub-notes Others (1,023) (1,084) o Increase of regulatory concession in Credit Conversion Factor Core Tier 1 Capital 9,917 8,927 (“CCF”) for undrawn cre
Slide 18: Agenda
AGENDA Executive Summary 3rd Quarter 2012 Financial Results Key Business Highlights Acquisition of OSK Investment Bank Summary
Slide 19: Retail Business Performance
Retail Business Performance Mortgage Personal Use RM bil RM bil 6.9% 6.6% 6.7% 7.4% 7.7% 7.3% 7.1% 7.4% 7.7% 7.3% 7.0% 5.7% 5.5 5.0 20.5 21.7 18.8 3.5 14.1 16.0 2.7 13.2 2.4 2.6 2007 2008 2009 2010 2011 Sept 2012 2007 2008 2009 2010 2011 Sept 2012 Mortgage Loans Market Share Personal Use Market Shar
Slide 20: Easy by RHB
Easy by RHB Number of Outlets Asset Composition - Sept 2012 245 236 25 25 P/Loan 50 25% 50 111 40 42 ASB 7 75% 19 32 121 128 14 53 2 July 2009 Dec 2009 Dec 2010 Dec 2011 Sept 2012 Easy Standalone Tesco POS LRT Financial Performance Gross Loans 5,0 00 16 0.0% 4,9 50 6.4% 4,9 00 RM mil 15 5.0% 4,8 50
Slide 21: Domestic Market Share - CIB
Domestic Market Share - CIB 9M Sept 2012 FY 2011 9M Sept 2011 Market Market Market Rank Rank Rank Share Share Share Debt Capital Market* 11.0% 3rd 9.7% 4th 7.5% 4th Broking (By Value) 5.7% 7th 8.0% 2nd 8.5% 2nd Mergers & Acquisitions 9.4% 10th 16.3% 3rd 26.3% 3rd Equities Capital Market^ nil nil 6.8
Slide 22: Islamic Business Performance
Islamic Business Performance PBT Loans 16 0.0% 15 5.0% RM mil 15 0.0% 14 5.0% 14 0.0% RM mil 21 5 13 5.0% 7.0% 13 0.0% 12 5.0% 6.5% 12 0.0% 11 5.0% 5.2% 5.1% 5.6% 4.5% 11 0.0% 10 5.0% 16 5 10 0.0% 95 .0% 90 .0% 162 85 .0% 80 .0% 75 .0% 11 5 70 .0% 211 65 .0% 60 .0% 55 .0% 50 .0% 15,957 65 156 45 .0%
Slide 23: Agenda
AGENDA Executive Summary 3rd Quarter 2012 Financial Results Key Business Highlights Acquisition of OSK Investment Bank Summary
Slide 24: Acquisition of OSK IB
Acquisition of OSK IB Strategic Rationale 1 Creating the largest and most complete investment bank as well as #1 broker in Malaysia Complementary client segments and transaction size focus Domestic Scale-up And Lends scale to fully capitalise on domestic market opportunities High Complementari
Slide 25: Acquisition of OSK IB: Access to Key Strategic Markets
Acquisition of OSK IB Immediate Established Access to Key Strategic Markets Malaysia Staff size : 1,947 Offices : 58 Business structure : Equities, futures, investment banking, fund management, treasury & deposits, Islamic banking, corporate loans 2011 equities ranking : #4 with 6.6% market share 20
Slide 26: RHB-OSK IB Merger: Collaborated Deals
RHB-OSK IB Merger: Collaborated Deals The RHB-OSK relationship off to a good start Strong Collaboration between RHB and OSK Investment Bank Wilmar Berjaya Otto First Golden International Ltd Sports Toto Marine Limited Resources Limited Agri-Resources Ltd US$5bn Guaranteed Medium Share placement 1-fo
Slide 27: Effects on Acquisition of OSK IB
Effects on Acquisition of OSK IB Key Financial Indicators RHB Enlarged RHB September Capital Group: Capital Group: RM bil As-Is Basis Proforma with OSKIB N1 Net loans 104.3 106.1 Total financial assets/investments 29.0 33.4 Goodwill 3.8 5.0 Total Assets 169.5 182.3 Deposits from Customers 125.7 131.
Slide 28: Acquisition of OSK IB - Status Update
Acquisition of OSK IB - Status Update Nov 2012 - Apr 2013 Oct 2013 May 2012 – Oct 2012 Nov 2012 Legal/Customer Single Platform Day 1 Day ♦ Signed CSPA and ♦ Completed transaction ♦ All assets and liabilities ♦ Surrender OSK IB announced transaction of OSK IB Group will be license ♦ OSK IB Group beco
Slide 29: Overview of Synergies Anticipated Over the Next 3 Years
Overview of Synergies Anticipated Over the Next 3 Years RM mil ♦ Substantial two-way cross-selling opportunities in IB 275 Revenue synergies ♦ Stronger market presence in IB as a larger group ♦ Expanded offering for retail & commercial clients of RHB ♦ Cost savings in Malaysia, mainly related to ove
Slide 30: Agenda
AGENDA Executive Summary 3rd Quarter 2012 Financial Results Key Business Highlights Acquisition of OSK Investment Bank Summary
Slide 31: Summary
Summary 1 Consistency in executing our strategy is delivering broadly satisfactory results, however, there are still areas that are being worked on in achieving expected potential 2 The completion of acquisition of OSK IB marks a major milestone for the Group which provides enhanced regional footpri
Slide 32: End
END INVESTOR RELATIONS CONTACT: Ms Yap Choi Foong Head, Investor Relations and Merger & Acquisition Integration Division +(603) 9280 2463 cfyap@rhb.com.my