Rhb Bank Bhd. · MYX:RHBBANK
Rhb Bank Bhd — FY2024 Earnings Presentation
42 slides from Rhb Bank Bhd's earnings presentation, Feb 27, 2025
Slide 1: RHB Bank Berhad Analyst Presentation FY2024 Financial Results
RHB BANK BERHAD Analyst Presentation FY2024 Financial Results Dato’ Mohd Rashid Mohamad Group Managing Director/Chief Executive Officer RHB Banking Group 27 February 2025
Slide 2: Agenda
1. Executive Summary 2. FY2024 Financial Results 3. New Corporate Strategy: “PROGRESS27” 4. Summary
Slide 3: Executive Summary
Executive Summary
Slide 4: FY2024: Financial Highlights
4 FY2024: Financial Highlights 4 Total Income >RM8 bil NIM strengthened to 1.86% Net Profit RM3.1 bil Loans Growth 6.9% Second Interim Dividend 28 sen (cash) +10.7% Y-o-Y 1.96% with liability management CIR 46.7% CASA Ratio 27.6% FY2024 Payout Ratio 60.1%; ROE 10.04%N1 ▪ Total income increased 10.7%
Slide 5: Higher total dividend of 43 sen per share vs 40 sen in FY2023
Higher total dividend of 43 sen per share vs 40 sen in FY2023 reflecting the Group’s improved 5 performance 5 Dividend Per Share (sen) 62.9% 63.2% ▪ The Group maintained its robust dividend payout ratio post-pandemic 61.1% 60.1% 60.0% 60.0% • Healthy dividend payout consistently above 60% 34.8% • Ca
Slide 6: TWP24 has delivered significant improvements over the past 3 years
TWP24 has delivered significant improvements in business and operations over the past 3 years 6 6 TWP24 – 3 Year Highlights FY2024 Actual +7.0% Retail Loans +4.7% SME Loans +11.8% Reflex Customers 3-year CAGR 3-year CAGR 3-year CAGR 10.04% Be Everyone’s Return on Equity (ROE) +7.8% Affluent & Mass P
Slide 7: FY2025: Outlook
7 FY2025: Outlook 7 Profitability ▪ Net fund based income – OPR is expected to be conducive and supportive of economic growth ▪ Defend NIM between 1.86% - 1.90% ▪ Supported by asset base growth (loans & securities portfolio) ▪ Non-fund based income ▪ Enhance and broaden our wealth proposition ▪ Incr
Slide 8: RHB Banking Group Scorecard – exceeded / met almost all FY2024 targets
RHB Banking Group Scorecard – exceeded / met almost all FY2024 targets 8 8 Target Actual Target KPI FY2024 FY2024 FY2025 ROE ≥ 10.0% 10.04% √ 10.4% - 10.8% Loans Growth ≥ 4.5% 6.9% √ 6.0% - 7.0% CASA Ratio ≥ 28.0% 27.6% x 28% - 29% Gross Impaired Loans Ratio ≤ 1.75% 1.47% √ 1.40% - 1.50% Cost-to-Inc
Slide 9: FY2024 Financial Results
FY2024 Financial Results
Slide 10: Record net profit of RM835 mil in Q4 2024
Achieved a record net profit of RM835 mil in Q4 2024 which surpassed the prior quarter’s record 10 of RM833 mil; contributing to the Group’s net profit of RM3.1 bil in FY2024 1.1% 3.9% 0.8% 10.7% Q-o-Q Y-o-Y 2,211 8,605 • Total Income grew +0.8% • Total Income grew +10.7% Total Income 2,088 2,112 2,
Slide 11: Gross loans growth outpaced the industry; asset quality improved
Gross loans growth outpaced the industry; significant improvement in asset quality lifted up LLC 11 Financial Position Asset Quality Total Gross Securities Stage 2 Loans Group GIL Domestic GIL Assets Loans Portfolio Ratio 6.5% 6.9% 9.6% 0.33% 10.1% 15.7% 228 238 88 88 5.18% 4.91% 4.0 3.5 3.0 2.4 329
Slide 12: Best quarterly net profit in Q4 2024
Best quarterly net profit in Q4 2024 supported by sustained income growth and lower ECL 1212 Q4 Q3 Q4 FY FY RM mil Q-o-Q Y-o-Y Y-o-Y 2023 2024 2024 2023 2024 Net fund based income 1,344 1,494 1,469 -1.6% 9.3% 5,450 5,790 6.2% Non-fund based income 680 700 742 5.9% 9.0% 2,320 2,815 21.3% Total Income
Slide 13: NIM expanded 4 bps to 1.86% in FY2024
NIM expanded 4 bps to 1.86% in FY2024 underpinned by prudent funding cost management; 1313 NIM with FX swap higher by 10 bps at 1.96% Y-o-Y: 3.3% Y-o-Y: 5.9% RM mil Y-o-Y: 0.1% Y-o-Y: 5.7% Y-o-Y: 9.3% Y-o-Y: 6.2% Q-o-Q: 1.6% 14,261 15,100 Fund Based Income 3,719 3,811 3,842 8,810 9,309 Fund Based Ex
Slide 14: Non-fund based income growth
Non-fund based income growth driven by higher fee income, net forex gain, net trading and N1 14 investment income and one-off gain on disposal of RHBSVN and RHBST Y-o-Y: 9.0% Y-o-Y: 21.3% RM mil Q-o-Q: 5.9% 2,815 742 2,320 N1 Others 680 700 109 54 N1 35 8 9 Treasury Income 1,491 362 379 376 1,194 Ne
Slide 15: With positive JAW, CIR improved to 46.7% in FY2024
With positive JAW, CIR improved to 46.7% in FY2024 1515 Q4 Q3 Q4 FY FY RM mil Q-o-Q Y-o-Y Y-o-Y 2023 2024 2024 2023 2024 N1 Personnel Expenses 567 586 661 12.8% 16.7% 2,215 2,424 9.4% Establishment Expenses 237 249 251 1.2% N2 5.9% 880 977 11.0% of which: IT Expenses 84 93 93 -0.4% 10.6% 295 355 20.
Slide 16: Loans growth of 6.9% by segment
Corporate segment rallied in Q4 2024; FY2024 loans growth of 6.9% mainly contributed by Group 1616 Community Banking, Group Wholesale Banking and Singapore segments Dec Sep Dec RM bil Q-o-Q Y-o-Y 2023 2024 2024 GROUP COMMUNITY BANKING 141 147 150 1.8% 6.5% Retail 113 119 122 2.1% 7.7% Mortgage 81 87
Slide 17: Optimise FD to rebalance deposits portfolio
Optimise FD to rebalance deposits portfolio with less reliance on pricier Corporate deposits 1717 Customer Deposits CASA by Segment RM bil Y-o-Y: 1.8% Dec Sep Dec RM bil Q-o-Q Y-o-Y Q-o-Q: 4.7% 2023 2024 2024 250 GROUP COMMUNITY BANKING 40 41 42 3.3% 5.5% 245 238 Retail 21 22 23 4.3% 8.1% 68 67 69 S
Slide 18: GIL improved significantly to 1.47%
GIL improved significantly to 1.47% with the resolution of 2 significant Corporate exposures; lifting 18 LLC higher to 78.6% (115.5% incl. Regulatory Reserves) Gross Impaired Loans (Group) Gross Impaired Loans (Domestic) 5.18% 4.92% 4.99% 4.91% 4.85% 5.34% 5.20% 5.21% 5.13% 5.08% GIL Ratio movement:
Slide 19: Asset quality focus areas by segment
Focus areas: Corporate aided by resolution of 2 significant Corporate exposures; focus on 19 intensifying recovery efforts in SME and International Business Group Community Banking Mortgage Unsecured Auto Finance SME 3.98% 3.95% 3.94% 3.69% 3.61% 7.61% 7.73% 7.98% 7.41% 7.18% 5.46% 5.70% 5.70% 5.46%
Slide 20: Growth across most segments; International Business losses narrowing
Growth across most segments; losses in International Business (excluding Singapore) narrowing 20 20 Group Community Banking (GCB) Group Wholesale Banking (GWB) Group International Business (GIB) FY2023: RM4,119 mil FY2023: RM2,760 mil FY2023: RM991 mil FY2024: RM4,277 mil 3.8% FY2024: RM3,504 mil 26
Slide 21: Capital position remained robust
Capital position remained robust for the Group and key banking subsidiaries 21 21 RHB Bank Group N1 RHB Bank 20. 0% 20. 0% 19. 0% 18. 0% 19.4% 19.0% 18. 0% 18.2% 17.7% 17. 0% 16. 0% 16. 0% 16.7% 16.4% 15. 0% 16.7% 16.4% 14. 0% 15.2% 14.8% 15.2% 14.8% 14. 0% 13. 0% 12. 0% 12. 0% 11. 0% 10. 0% 10. 0%
Slide 22: New Corporate Strategy: PROGRESS27
New Corporate Strategy: “PROGRESS27”
Slide 23: Building on the 6.0% PAT CAGR delivered via TWP24
Building on the 6.0% PAT CAGR delivered via TWP24, RHB is well-positioned for its next phase of 23 growth Profit After Tax (RM Mn) FIT22 Strategy TWP24 Strategy +6.0% 3,120 +4.3% 2,806 2,618 2,678 2,482 2,305 2,033 2018 2019 2020 2021 2022 2023 2024 DPS (Sen) 20.50 31.00 17.65 40.00 40.00 40.00 43.0
Slide 24: PROGRESS27 strategy 2025-2027 and key targets
PROGRESS27 is RHB’s next long-term strategy that will run from 2025-2027 24 24 Strategy Strategic Objectives Key Targets (by 2027) Best in Service ≥ 12% ROE High ≤ 44.8% CIR Profitability Responsible & ≤ 1.3% GIL Purposeful
Slide 25: Three strategic objectives (1/3)
Our next chapter PROGRESS27 makes conscious decisions on what type of Bank we want to be 25 along three strategic objectives (1/3) 25 Continue to believe that our “right-to-win” will come from being the best service 1 bank in Malaysia Best in Service 2 Pursue leading levels of service excellence and
Slide 26: Three strategic objectives (2/3)
Our next chapter PROGRESS27 makes conscious decisions on what type of Bank we want to be 26 along three strategic objectives (2/3) 26 1 Pursue above market loans growth in Malaysia (> 6% p.a.) Drawing growth from higher yield segments, particularly Malaysian mid-sized Best in 2 companies (> 10% p.a.
Slide 27: Three strategic objectives (3/3)
Our next chapter PROGRESS27 makes conscious decisions on what type of Bank we want to be 27 along three strategic objectives (3/3) 27 It is important that we are a responsible bank, and continue to push the Bank 1 towards leading practices in Sustainable Financing, Environmental Protection, Best in
Slide 28: Eight multi-year programmes to deliver PROGRESS27
We aim to deliver PROGRESS27’s 3 strategic objectives via 8 multi-year programmes 28 28 Strategy Strategic Objectives Programmes (2025-2027) 1 P• romote Domestic CASA Growth Best in Service 2 R• etail Wealth Management Focus 3 O• ptimise Costs & Productivity 4 G• row Domestic Loans Portfolio High Pr
Slide 29: Summary
Summary
Slide 30: Concluding Remarks
Concluding Remarks 30 30 ▪ Key Financial Indicators Q-o-Q Positive trajectory continued in Q4 2024 whereby earnings grew from RM833 mil (Q3 2024) to RM835 mil (Q4 2024) driven by: i. Income grew by 0.8% to RM2.2 bil ii. Opex increased 8.2% mainly due to higher personnel costs; CIR at 48.8% (45.4% in
Slide 31: Thank You
THANK YOU www.rhbgroup.com INVESTOR RELATIONS CONTACT Email :investor.relations@rhbgroup.com 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 nee
Slide 32: Appendix
Appendix
Slide 33: Key Financial Data
Key Financial Data 33 33 Financial Data FY2020 FY2021 FY2022 FY2023 FY2024 RM mil Income Statement Total Income 7,186 7,789 8,160 7,770 8,605 Operating Profit Before Allowances 3,799 4,266 4,554 4,081 4,583 Profit Before Tax 2,644 3,529 4,133 3,753 4,020 Net Profit 2,033 2,618 2,678 2,806 3,120 Bala
Slide 34: Key Financial Ratios
Key Financial Ratios 34 34 Financial Ratios FY2020 FY2021 FY2022 FY2023 FY2024 Profitability Return on Equity 7.7% 9.6% 9.6% 9.5% 10.04% Net Interest Margin 2.13% 2.20% 2.24% 1.82% 1.86% Cost to Income Ratio 47.1% 45.2% 44.2% 47.5% 46.7% Asset Quality Gross Impaired Loan Ratio 1.71% 1.49% 1.55% 1.74
Slide 35: Segmental Performance
Segmental Performance 35 Group Community Banking Group Wholesale Banking FY2023: RM3,631 mil FY2023: RM1,209 mil 4.3% 28.9% FY2024: RM3,785 mil FY2024: RM1,559 mil 2.8% Net Fund Based 2,430 2,499 7.1% 51.3% 1.7% 2.8% Income 1,201 1,287 699 1,058 794 771 510 501 Retail SME CBIB Treasury International
Slide 36: Retail Banking
Retail Banking 36 36 RM bil Gross Loans RM bil Customer Deposits Y-o-Y: 7.7% Y-o-Y: 10.3% 89 81 140 120 12 12 100 9 11 80 60 113 122 60 66 40 20 - Dec 2023 Dec 2024 Dec 2023 Dec 2024 Fixed Deposits Demand Deposits Savings Deposits Retail Market Share * Asset Quality 9.5% RM mil 9.3% 9.4% 9.1% 9.2% 0
Slide 37: SME
SME 37 37 Gross Loans Customer Deposits RM bil RM bil Y-o-Y: 5.2% Y-o-Y: 1.7% 36 35.0 30.0 34 25.0 20.0 19 19 28 28 15.0 15 16 10.0 5.0 - Dec 2023 Dec 2024 Dec 2023 Dec 2024 Fixed Deposits Demand Deposits *Numbers may not sum up due to rounding SME Market Share * RM mil Asset Quality 3.20% 3.43% 3.3
Slide 38: Asset Under Management and Market Positions
Asset Under Management and Market Positions 38 38 Asset Under Management (AUM)* Investment Banking League Table RM bil Y-o-Y : 8.9% FY2024 Market Share Ranking Equities Broking: 54 - By value 7.0% 7th 50 - By volume 7.9% 4th 8 9 Debt Capital Markets: Singapore - MYR sukuk 13.1% 3rd Malaysia 42 45 -
Slide 39: Investment Banking – Notable Deals
Investment Banking – Notable Deals 39 39 CF/ECM DCM M&A ESG Johor Plantations Group Berhad Capital A Berhad RM735.0 mil IPO Malaysia Rail Link Sdn Bhd RM6,800.0 mil Principal Adviser, Joint Global Coordinator, Issuance of RM1.5 bil SDG Sukuk Murabahah under its Disposal of AirAsia Aviation Group Lim
Slide 40: Islamic Banking
Islamic Banking 40 40 PBT Gross Financing RM mil RM bil Y-o-Y: 5.7% Y-o-Y: 8.1% 100 .0 90.0 80.0 70.0 60.0 91 50.0 40.0 30.0 84 1,127 20.0 1,064 10.0 - Dec 2023 Dec 2024 Market 9.5% 9.5% FY2023 FY2024 Share Gross Financing/ Asset Quality Total Gross Financing (Domestic) RM mil 1.45% 1.48% 1.53% 1.54
Slide 41: RHB Bank Singapore
RHB Bank Singapore 41 41 PBT Gross Loans & Deposits SGD mil SGD bil Y-o-Y: 14.8% Y-o-Y: 95.6% 120 Y-o-Y: 4.5% 100 80 60 8 9 9 10 40 99 50 20 Dec2023 Dec 2023 Dec2024 Dec 2024 - Gross Loans Deposits FY2023 FY2024 Gross Impaired Loans Ratio Credit Charge Ratio 1.10% 1.03% 0.36% 0.05% 0.14% -0.08% 0.10
Slide 42: Overseas Loans
Overseas Loans 42 42 Dec Sep Dec RM bil Q-o-Q Y-o-Y 2023 2024 2024 Overseas Operations 33 32 34 8.9% 4.7% Singapore 27 27 29 10.1% 8.3% Others* 6 5 5 2.0% -12.6% of which: Cambodia 4 3 3 6.0% -8.0% Thailand 2 1 1 -7.6% -24.1% * Others = not included above are Brunei, Indonesia, Laos and Vietnam with