Slide 1: RHB Capital Berhad Audited Financial Results for FY 2011
RHB Capital Berhad Audited Financial Results for FY 2011 Mr. Kellee Kam Group Managing Director RHB Banking Group 28 February 2012 STRICTLY PRIVATE & CONFIDENTIAL
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: 1. Overview
1. Overview STRICTLY PRIVATE & CONFIDENTIAL
Slide 4: Key Messages
Key Messages Changes in key management personnel and other RHB specific events Tough 2011 operating environment, both Continued profitability growth albeit slower pace with PBT exceeded RM2 bil mark for the internally & externally first time Distribution growth remained on track with Easy now
Slide 5: Financial Report Card
RHB Banking Group Financial Report Card RHB Banking Group Scorecard 2011 Commentary Top level Targets indicators FY 08 FY 09 FY 10 FY 11 FY 11 ROE 1. Lower ROE and ROA resulting 14.1% 14.5% 15.2% >15.2% 14.0% (%) from: Pressure on margins ROA Cost increase in personnel 1.0% 1.1% 1.2% >1.2% 1.1%
Slide 6: 2. Financial Results
2. Financial Results STRICTLY PRIVATE & CONFIDENTIAL
Slide 7: Summary of Income Statement
Summary of Income Statement Q-o-Q Y-o-Y Q4 Q3 FY FY Change Change RM mil 2011 2011 2011 2010 % % Net Interest Income 709 695 2 2,787 2,673 4 Other Operating Income 283 216 31 1,082 1,043 4 Income From Islamic Banking Business 144 120 20 439 334 31 Total Income 1,136 1,031 10 4,308 4,050 6 Other Oper
Slide 8: Breakdown of Total Income
Breakdown of Total Income Q-o-Q Y-o-Y Q4 Q3 FY FY Change Change RM mil 2011 2011 2011 2010 % % Net Interest Income 709 695 2 2,787 2,673 4 Other Operating Income 283 216 31 1,082 1,043 4 Income From Islamic Banking Business 144 120 20 439 334 31 Total Income 1,136 1,031 10 4,308 4,050 6 Net Total In
Slide 9: Other Operating Expenses
Other Operating Expenses Q-o-Q Y-o-Y Q4 Q3 FY FY Change Change RM mil 2011 2011 2011 2010 % % Personnel Costs 308 297 4 1,182 961 23 Establishment Costs 96 101 -5 381 356 7 Marketing Expenses 50 42 19 146 132 11 Admin & General Expenses 53 48 10 194 191 2 Other Operating Expenses 507 488 4 1,903 1,6
Slide 10: Allowance for Impairment on Loans, Financing and Other Losses
Allowance for Impairment on Loans, Financing and Other Losses Q-o-Q Y-o-Y Q4 Q3 FY FY Change Change 2011 2011 2011 2010 RM mil % % Individual Impairment Allowance 70 (1) >100 112 183 -39 Collective Impairment Allowance 112 147 -24 544 419 30 Impaired Loans and Financing Recovered (88) (117) -25 (332
Slide 11: Profit Contribution by Entity
Profit Contribution by Entity Y-o-Y % Contribution RM mil FY 2011 FY 2010 Change FY 2011 % RHB Bank 1,887 1,741 8 89 RHB Investment Bank 45 80 -44 2 RHB Islamic Bank 138 91 52 7 RHB Insurance 50 65 -23 2 RHB Capital and other subsidiaries* (120) (78) -54 PBT 2,000 1,899 5 100 * Including consol adju
Slide 12: Key Balance Sheet Items
Key Balance Sheet Items Q-o-Q Y-o-Y Dec Sept Dec Change Change 2011 2011 2010 % % RM mil Total Assets 152,394 149,580 129,325 2 18 Total Financial Assets/Investments 26,303 27,050 25,017 -3 5 - Financial Assets HFT 1,502 1,441 772 4 95 - Financial Investments AFS 10,707 12,535 13,375 -15 -20 - Finan
Slide 13: Loans, Advances and Financing
Loans, Advances and Financing Q-o-Q Y-o-Y Dec Sept Dec Change Change RM mil 2011 2011 2010 % % Working Capital 20,318 21,291 20,694 -5 -2 Purchase of Residential Property 20,518 20,246 18,841 1 9 Purchase of Non-Residential Property 5,277 5,321 4,761 -1 11 Purchase of PPE Other Than 3,238 3,195 3,33
Slide 14: Loan Profile
Loan Profile Composition of Loan Book - Improved Diversity of Loan Book by Interest/ Profit Rate Sensitivity 2% 1% 1% 7% 5% 6% 6% 7% 5% 11% Fixed Rate 11% 32% Variable Rate 68% 36% 34% 28% 27% 26% 17% 16% 13% 12% 15% Composition of Loan Book - by Strategic Business Group 43% 44% 45% CIB, 30% 41% 41%
Slide 15: Customers Deposits
Customers Deposits Customers Deposits Customers Deposits : Composition Q-o-Q Y-o-Y Dec Sept Dec 100% Change Change 6% 5% RM mil 2011 2011 2010 % % 90% Fixed Deposits 87,946 82,951 68,830 6 28 21% 19% 80% of which: MMTD 23,259 26,628 24,505 -13 -5 70% Demand Deposits 21,436 20,515 19,523 4 10 20% 60%
Slide 16: Loans and Deposits
Loans and Deposits Loans Customers Deposits RM bil RM bil 20% 16% 32% 23% 13% 10% 15% 9% 12% 11% 7% 13% 14% 11% 14% 8% 97.3 9% 7% -2% 115.9 1% 83.7 69.6 94.4 63.2 75.8 84.8 56.8 74.0 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 Gross Loans Loans Growth Industry Loans Growth Deposits Deposits Gr
Slide 17: Asset Quality
Asset Quality New Impaired Loans Formation Improved to 0.91% from Gross Impaired Loans Ratio Improved by 0.95% to 3.44% 1.30% a year ago RM mil % Net decrease of RM321 mil 6.66 6.46 5.90 8,000 5.64 5.5 4.95 5.00 4.98 6,000 4.67 3,712 -3,428 4.39 4.12 3.90 3.66 3.44 4,000 -605 3.5 3.96 3.88 3.84 3.62
Slide 18: Capital Position (1/2)
Capital Position (1/2) RHB Bank RHB Islamic Bank RM bil RM bil 17% 15% 15.8% 14.6% 15.7% 14.0 15.0% 14.0% 14.9% 13.5% 13.6% 14.0% 13.2% 13.8% 12.7% 13% 12.7% 13.0% 1.5 12.0 13% 11.8% 11.7% 12.7% 12.1% 12.2% 10.8% 11.8% 1.3 11% 12.3% 11.4% 11.5% 10.0 10.8% 10.8% 10.5% 10.5% 10.5% 9.3 9.9% 9% 8.4 8.4
Slide 19: Capital Position (2/2)
Capital Position (2/2) RHB Investment Bank RHB Capital RM bil Times 41.4% 1.4 42% 0.7 154% 153% 153% 152% 152% 37% 149% 146% 147% 1.2 33.9% 31.8% 34.0% 32% 0.6 28.3% 29.5% 1.0 0.55 0.56 0.56 27.3% 0.54 0.55 25.2% 27% 0.52 22.7% 0.51 130% 27.7% 26.7% 0.50 0.5 0.8 24.1% 22% 22.9% 22.2% 21.4% 0.6 17% 0
Slide 20: Return to Shareholders
Return to Shareholders Market Capitalisation and Share Price Trend Dividend Trend - 2007 to 2011 30,000 10 Final Interim 8.72 25,000 21.38% 17.41% 7.48 8 17.45% 20,000 5.85 5.30 6 10.6% 18,778 15,000 3.90 16,492 3.42 4 8.6% 10,000 12,598 2.21 11,413 8,399 2 5,000 6,236 4,030 5.0% 9.0% 5.0% 5.0% 8.0%
Slide 21: 3. Key Business Highlights
3. Key Business Highlights STRICTLY PRIVATE & CONFIDENTIAL
Slide 22: Retail Business Performance
Retail Business Performance 7.3% 7.1% 7.4% 7.7% 7.3% 18.8 20.5 14.1 16.0 6.9% 6.6% 6.7% 7.4% Mortgage 13.2 5.7% 5.0 2007 2008 2009 2010 2011 3.5 Personal 2.4 2.6 2.7 Mortgage Loans (RM bil) Market Share Use 23.8% 15.6% 2007 2008 2009 2010 2011 9.3% 6.2 7.0% 8.1% 3.3 Personal Use (RM bil) Market Shar
Slide 23: Easy Performance
Easy Performance 236 SGAM Best Process Effies 2010 Silver Award Innovation Award 25 50 The Asian Banker International Banking & Payment Asia Number of 111 40 Award Excellence in Retail Financial Trailblazer Awards 2011 Winning Services Awards 2011 Outlets 7 Innovation 19 32 121 Financial Insights In
Slide 24: Insurance Business Performance
Insurance Business Performance General Insurance - Gross Premium Bancassurance - Gross Premium RM mil 2.8% ^ RM mil 2.3% 2.3% 278 2.1% >100% 1.9% 383 305 110 271 232 125 200 62 168 63 2007 2008 2009 2010 2011 2010 2011 ^ As at Sept 2011 Gross Premium Market Share Credit Related Premium Non-Credit Re
Slide 25: Domestic Market Share - CIB
Domestic Market Share - CIB FY 2011 FY 2010 FY 2009 FY 2008 Market Market Market Market Rank Rank Rank Rank Share Share Share Share Mergers & Acquisitions 16.3% 3rd 58.8% 1st 9.0% 3rd 9.6% 4th Equities^ 6.8% 4th 7.7% 3rd 8.9% 3rd 16.6% 3rd Debt Capital Market* 9.7% 4th 9.9% 3rd 13.2% 3rd 9.6% 4th Br
Slide 26: Islamic Business Performance
Islamic Business Performance Benefited from Refinement of Islamic Banking Model 10 5.0% 21 5 RM mil 10 0.0% 95 .0% 90 .0% RM mil 85 .0% 80 .0% 49% 44% 16 5 75 .0% 70 .0% 65 .0% 162 52% 60 .0% 25% 24% 55 .0% 20% 20% 11 5 50 .0% 45 .0% 15% 33% 40 .0% 35 .0% 18% 10% 10% 30 .0% PBT 65 138 25 .0% Loans 1
Slide 27: 4. In Summary
4. In Summary STRICTLY PRIVATE & CONFIDENTIAL
Slide 28: In Summary
In Summary 1 Performance impacted by revaluation loss on derivatives undertaken to hedge fixed rate loans and financing portfolio; 2 Steady total income growth partly negated by increased personnel cost for retention and optimization; 3 Loans and deposits growth outpaced industry growth and met 2011
Slide 29: Forward Looking - 2012 Targets
Forward Looking - 2012 Targets RHB Banking Group Scorecard 2012 Top level indicators FY 11 Target 2012 ROE (%) 14.0% >14.0% ROA (%) 1.1% 1.2% Gross Impaired Loans 3.0% 3.4% Ratio (%) Loans Growth 16.2% >12% (%) Deposits Growth 22.7% >12% (%) Cost to Income Ratio (%) 44% < 44% International Contribut
Slide 30: End
End STRICTLY PRIVATE & CONFIDENTIAL