Hong Leong Bank Bhd · MYX:HLBANK
Hong Leong Bank Bhd — H1 FY2021 Earnings Presentation
22 slides from Hong Leong Bank Bhd's earnings presentation, 2021
Slide 1: Confidentiality notice
The information contained in this presentation is strictly confidential for information of the intended recipient(s) only. The information may not be reproduced, redistributed or transmitted, directly or indirectly by any means to any other person or published electronically or via print, in whole o
Slide 2: HLB H1FY21 ended 31 December 2020
1 HLB H1FY21 ended 31 December 2020 2
Slide 3: Key Financial Highlights
Key Financial Highlights Commendable business performance for H1FY21 Total Income Opex & CIR Operating Profit • Strong top-line growth underpinned by above • Tightly managed opex coupled with robust • Solid underlying business performance industry loan growth and lower funding cost topline led to im
Slide 4: Payment Relief Assistance Plans (PRAP)
HLB Payment Relief Assistance Plans (“PRAP”) Continued to help affected customers to facilitate recovery PRAP outstanding as at 31 Jan 2021 Retail: RM8.8 bil Helped 65k customers, matured RM11.6 amounting to RM16.0 billion * SME & Corporate: billion^ RM2.8 bil Note: ^ As at 31 January 2021; repr
Slide 5: Management Guidance
Management Guidance All KPIs within guidance Target FY2021 5% to 1.95% 15-20 9.5% to <43% <1% >26% 6% to 2% bps 10% Gross Net Cost-to- Gross Net Credit Return on Loan Interest Income Impaired CASA Mix Cost Equity Growth Margin Ratio Loan Ratio ~6% >2% ~40% ~30 bps Achieved H1FY21 P P P P P P P 6.2%
Slide 6: Profit & Loss
Profit & Loss Solid underlying performance supported by top-line growth and prudent cost management Profit After Tax 281 15 17 23 7 RM’mil 1,390 333 1,400 PAT H1FY20 Net Interest Non Interest Opex Loan & Other Associates Tax PAT H1FY21 Income Income Impairment Contribution Allowances Change RM’mil H
Slide 7: Net Interest Income & NIM
Net Interest Income & NIM Sequential NIM improvement from prudent funding cost management OPR down by 125 bps 3.00% 2.50% 2.00% 1.75% 1.75% 15 bps 5 bps 2.15% 2.08% q-o-q 2.03% y-o-y 2.04% 2.00% 1.92% 1.84% 15.7% 2,075 1,793 y-o-y RM'mil 1.62% 9.2% 1,083 RM'mil q-o-q 912 992 839 773 4,063 12.1% 3,57
Slide 8: Non-Interest Income
Non-Interest Income Good Markets/Treasury performance coupled with sustained growth in wealth management activities 26.9% 24.5% Net gain Trading & Investment: H1FY20 H1FY21 of which from sale of RM119 mil RM177 mil 48.7% FVOCI RM’mil 659 674 61 50 16 33 250 321 Credit Card H1FY20 H1FY21 18.4% Relate
Slide 9: Operating Expense
Operating Expense Tightly managed opex coupled with robust topline; CIR maintained below 40% Composition of Operating Expenses Domestic 40.3% Admin & CIR general 35.4% 10% Personnel Marketing cost 7% 59% 42.8% H1FY21 37.6% Establishment 1,049 1,033 24% RM’mil 130 106 87 67 254 249 Operating Expense
Slide 10: Loans/Financing
Loans/Financing Sustained growth momentum, continued expansion in key segments 4,900 157 4,089 (+14.7%) (+2.0%) (+4.1%) 6.2% 425 149,994 y-o-y RM’mil 141,273 Total Loans H1FY20 Retail Business & International Modification Loss Total Loans H1FY21 Corporate Operations Domestic Residential H1FY20 H1FY2
Slide 11: Asset Quality
Asset Quality Robust asset quality with further pre-emptive impairment buffers built up Gross Impaired Loans/Financing (GIL) Loan/Financing Impairment Coverage (LIC) Combined RM600 mil Pre-emptive Impairment Buffers (RM’mil) 301 299 1.66% 1.61% 1.56% 1.57% 1.45% 263% 0.96% 236% 0.87% 0.78% 0.61% 197
Slide 12: Asset Quality
Asset Quality Healthy credit portfolio amid challenging business environment Malaysia Overseas 0.82% 0.64% 0.10% 0.11% 0.56% 0.08% 1,064 881 801 7 8 6 FY19 FY20 H1FY21 FY19 FY20 H1FY21 Group Residential Properties Transport Vehicles SME 0.56% 0.47% 1.54% 0.37% 0.70% 1.33% 0.52% 1.11% 376 0.42% 341 3
Slide 13: Deposit
Deposit Solid funding base coupled with expansion in CASA mix CASA Fixed Deposits 4.8% 21.5% 5.7% y-o-y y-o-y y-o-y Dec-20 Market Share: 8% Dec-20 Market Share: 7% Dec-20 Market Share: 8% RM’mil RM’mil 30% mix 91,064 94,503 92,867 52,544 RM'mil 176,488 48,358 173,493 41,725 163,070 155,233 157,414 F
Slide 14: Liquidity & Capital
Liquidity & Capital Strong liquidity and capital positions to navigate through the headwinds and support continued business growth Loan Deposit Ratio (LDR) Capital Adequacy^ Potential uplift CET 1 40 bps 88.8% 89.2% 88.6% 87.6% 87.9% from release of Total Capital regulatory reserves 16 bps Ratio 80.
Slide 15: Shareholder Value
Shareholder Value Stable returns backed by resilient performance Return on Equity & Return on Assets Net Assets & Earnings Per Share 36 34 33 10.5% 10.8% 9.5% 10.1% 28 26 13.7 13.8 12.7 12.9 13.3 1.30% 1.32% 1.18% 1.24% Q1FY21 Q2FY21 H1FY20 H1FY21 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 ROE ROA NAV/share
Slide 16: HLB H1FY21 ended 31 December 2020
2 HLB H1FY21 ended 31 December 2020 16
Slide 17: Shopee partnership - Expanding our distribution reach
& partnership - Expanding our distribution reach Easy to open an First bank account! Very convenient to create saving acc after they call for appointment and to have an official store in Shopee no need to que up.... CS very good for HL bank.. !! offering Bank Accounts TERBAIK! Public Launch 28 Jan 2
Slide 18: Closing Remarks
Closing Remarks Resilient performance, robust liquidity and capital levels. Steadfast in helping clients through the recovery journey. Commendable top-line growth; net interest income surged on the back of improving NIM% due to effective funding cost management and loans/financing growth. Expens
Slide 19: HLB H1FY21 ended 31 December 2020
3 HLB H1FY21 ended 31 December 2020 19
Slide 20: Group Performance
Group Performance Change Change Change RM’mil H1FY20 H1FY21 Q2FY21 (YoY) (YoY) (QoQ) Net interest income 1,793 2,075 15.7% 1,083 18.8% 9.2% Non-interest income 659 674 2.3% 317 -2.6% -11.1% Total income 2,453 2,749 12.1% 1,400 13.1% 3.8% Operating expenses (1,049) (1,033) -1.6% (512) -2.9% -1.8% Ope
Slide 21: HLISB - Key financial highlights
HLISB - Key financial highlights Total Net Income Opex & CIR Profit after Tax and Zakat • Solid growth attributable to effective funding • Expenses were prudently managed, leading to • Accordingly, higher bottom-line, backed by cost management positive JAWS and improved CIR commendable business perf
Slide 22: Thank You
Disclaimer This presentation has been prepared by Hong Leong Bank (“HLB”) for selected recipients for information purposes only and the information contained herein has been obtained from sources believed to be reliable. The information contained herein is believed to be correct as of the date of th
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