Rhb Bank Bhd. · MYX:RHBBANK
Rhb Bank Bhd — Q1 2024 Earnings Presentation
32 slides from Rhb Bank Bhd's earnings presentation, May 29, 2024
Slide 1: Analysts Presentation Q1 2024 Financial Results
RHB BANK BERHAD Analysts Presentation Q1 2024 Financial Results Mohd Rashid Mohamad Group Managing Director/Group Chief Executive Officer RHB Banking Group 29 May 2024
Slide 2: Agenda
1. Executive Summary 2. Q1 2024 Financial Results 3. Summary
Slide 3: Executive Summary
Executive Summary
Slide 4: Q1 2024: Financial Highlights
4 Q1 2024: Financial Highlights 4 Net Profit Loans ann. growth: 4.5% Group: CET1 16.5% RM730.2 million CASA ratio: 29.0% TCR 19.2% ▪ Total income increased 9.5% to RM2.1 billion from higher net fund based and non-fund based income ▪ Net fund based income increased 0.9% to RM1.4 billion; non-fund bas
Slide 5: TWP24 Strategy: Key Highlights
TWP24 Strategy: Key Highlights 5 5 Q1 2024 Achievements +1.4% Retail Loans +2.1% Mortgage Loans +3.4% Auto Financing Be Everyone’s YTD March 2024 YTD March 2024 YTD March 2024 9.2% Return on Equity (ROE) Primary Bank +2.6% Reflex Customers +7.9% Merchants FY2023: 9.5% | TWP24: 11.5% YTD March 2024 (
Slide 6: Other Initiatives: Key Highlights
6 Other Initiatives: Key Highlights 6 RHB-BOOST BANCASSURANCE EDUCATION SUSTAINABILITY DIGITAL BANK PARTNERSHIP PARTNERSHIP STRATEGY LAUNCH RENEWAL EXPANSION REFINEMENT • Boost Bank is very • Evaluation process is • RHB MySiswa Card for • RHB has publicly close to be launched ongoing – with public u
Slide 7: Q1 2024 Financial Results
Q1 2024 Financial Results
Slide 8: Q1'24 total income improved on NIM and fee income expansion
Q1’24 total income improved on the back of improving NIM and expansion of fee income amidst 88 growth in loans and securities portfolio Financial Results Profitability Ratios Total Operating Profit Profit Net Profit Return on Cost-to-Income Non-Fund Based/ Income Before Allowances Before Tax Equity
Slide 9: Profit supported by improved NIM and fee income; higher opex and ECL
Profit supported by improved NIM & expansion of fee income; neutralised with higher opex and 99 ECL Q1 Q4 Q1 RM’ mil Q-o-Q Y-o-Y 2023 2023 2024 Net Fund Based Income 1,373.7 1,343.6 1,385.5 3.1% 0.9% Non-Fund Based Income 534.0 680.4 702.7 3.3% 31.6% Total Income 1,907.7 2,024.0 2,088.2 3.2% 9.5% Op
Slide 10: NIM strengthened 6 bps Q-o-Q to 1.83%
NIM strengthened 6 bps Q-o-Q to 1.83% from easing of funding costs pressure with continued 1010 opportunities for liability management initiative Y-o-Y: +9.3% RM’bil Y-o-Y: -15.1% Y-o-Y: +0.9% Fund Based Income Q-o-Q: +3.1% Fund Based Expense 3.38 3.72 3.70 Net Fund Based Income 2.01 2.38 2.31 1.37
Slide 11: Non-fund based income growth driven by fee and trading income
Non-fund based income growth driven by higher fee income and net trading and investment 11 income Y-o-Y: +31.6% RM’mil Q-o-Q: +3.3% 680.4 702.7 534.0 8.3 7.0 Others 5.1 Treasury Income 361.9 400.0 277.9 Net Income from 19.6 13.5 Insurance Business 9.6 241.4 290.6 282.2 Fee Income Q1 2023 Q4 2023 Q1
Slide 12: CIR improved Q-o-Q to 45.9%; opex grew 12.0% Y-o-Y
CIR improved Q-o-Q to 45.9% in Q1’24; opex grew 12.0% Y-o-Y mainly from higher personnel, IT 1212 and marketing costs Q1 Q4 Q1 RM’ mil Q-o-Q Y-o-Y 2023 2023 2024 Personnel Expenses 505.6 566.8 577.3 1.8% 14.2% Establishment Expenses 214.4 237.4 236.8 -0.3% 10.5% of which: IT Expenses 74.2 83.8 83.7
Slide 13: YTD loans growth led by Singapore and Group Community Banking
YTD loans growth led mainly by Singapore and Group Community Banking (especially mortgage 1313 and auto finance) Mar Dec Mar RM’bil YTD Y-o-Y 2023 2023 2024 GROUP COMMUNITY BANKING 134.5 140.9 142.6 1.2% 6.0% Retail 107.8 113.3 114.9 1.4% 6.5% Mortgage 76.6 81.5 83.2 2.1% 8.6% Commercial Property Fi
Slide 14: CASA composition improved to 29.0%
CASA composition improved to 29.0% with focus on improvement in cost of funds; 1414 YTD deposits declined marginally from lower FD and MMTD, but benefitted from higher CASA Customer Deposits CASA by Segment RM’bil Y-o-Y: +7.3% Mar Dec Mar RM’bil YTD Y-o-Y YTD: -0.9% 2023 2023 2024 GROUP COMMUNITY BA
Slide 15: Credit cost of 25 bps and GIL of 1.83%
Managed persistent pressure on asset quality with credit cost of 25 bps and GIL of 1.83% 15 600000.00% 2.80% 800 1.5 0% 550000.00% 2.60% 700 Allowances for Losses on Loans 500000.00% Gross Impaired Loans 1.0 0% 2.40% RM’mil 600 600000.00% 5.71% 5.55% 5.20% 5.18% 4.92% 2.80% 0.42% 450000.00% 500 0.30
Slide 16: Contained GIL increase with focus on recoveries
Contained GIL increase with continuous sharp focus on recoveries 16 Group Community Banking Mortgage Unsecured Auto Finance SME 4.05% 3.98% 3.95% 8.42% 7.61% 7.73% 5.64% 5.46% 5.70% 12.38% 12.66% 11.96% 1.40% 1.20% 100 3.42% 1150 0.95% 0.95% 1.39% 0.57% 0.60% 0.50% 1.00%2.99% 3.20% 0.85% 1.00% 1.35%
Slide 17: Profitability movement by business segment
Mixed bags of profitability movement; GWB – pronounced fee income to drive revenue and PBT; GCB – improved funding costs but trailing on higher opex and ECL; GIB – Singapore continued to 1717 contribute growth but ECL in other countries impacted overall PBT Group Community Banking (GCB) Group Wholes
Slide 18: Capital position remained robust for the Group and key banking subsidiaries
Capital position remained robust for the Group and key banking subsidiaries 18 18 RHB Bank Group RHB Bank 20. 0% 20. 0% 19. 0% 18. 0% 19.4% 19.2% 18. 0% 18.2% 18.1% 17. 0% 16. 0% 16. 0% 16.7% 16.5% 16.7% 16.5% 15. 0% 14. 0% 15.2% 15.1% 15.2% 15.1% 14. 0% 13. 0% 12. 0% 12. 0% 11. 0% 10. 0% 10. 0% 9.0
Slide 19: Summary
Summary
Slide 20: Concluding Remarks
Concluding Remarks 20 20 ▪ Q1 2024 posts improvement in revenue growth, but continue to face headwinds on asset quality pressure ▪ The Group will continue to emphasize on our FY2024 focus areas: i. optimising cost of funds through liability management initiatives and realisation of CASA balances thr
Slide 21: 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 22: Appendix
Appendix
Slide 23: Key Financial Data
Key Financial Data 23 23 Financial Data FY2020 FY2021 FY2022 FY2023 Q1 2024 RM’mil Income Statement Total Income 7,186 7,789 8,160 7,770 2,088 Operating Profit Before Allowances 3,799 4,266 4,554 4,081 1,129 Profit Before Tax 2,644 3,529 4,133 3,753 910 Net Profit 2,033 2,618 2,678 2,806 730 Balance
Slide 24: Key Financial Ratios
Key Financial Ratios 24 24 Financial Ratios FY2020 FY2021 FY2022 FY2023 Q1 2024 Profitability Return on Equity 7.7% 9.6% 9.6% 9.5% 9.2% Net Interest Margin 2.13% 2.20% 2.24% 1.82% 1.83% Cost to Income Ratio 47.1% 45.2% 44.2% 47.5% 45.9% Asset Quality Gross Impaired Loan Ratio 1.71% 1.49% 1.55% 1.74%
Slide 25: Segmental Performance
Segmental Performance 25 Group Community Banking Group Wholesale Banking Q1 2023: RM937.6 mil Q1 2023: RM293.3 mil 2.1% 29.7% Q1 2024: RM918.2 mil Q1 2024: RM380.5 mil 3.7% Net Fund 630 607 1.3% 35.3% 24.2% 3.2% Based Income 307 311 147 198 147 182 170 175 Retail SME CBIB Treasury International Grou
Slide 26: Retail Banking
Retail Banking 26 26 RM’bil Gross Loans RM’bil Customer Deposits Y-o-Y: +6.5% Y-o-Y: +9.7% 100 .0 75.8 83.2 80.0 12.2 12.0 9.5 10.0 60.0 107.8 114.9 61.1 40.0 20.0 54.1 - Mar 2023 Mar 2024 Mar 2023 Mar 2024 Fixed Deposits Demand Deposits Savings Deposits Retail Market Share * Asset Quality 9.2% RM’b
Slide 27: SME
SME 27 27 Gross Loans Customer Deposits RM’bil RM’bil Y-o-Y: +15.9% Y-o-Y: +4.1% 30.0 35.7 25.0 30.8 20.0 18.9 15.0 26.6 27.7 17.4 10.0 5.0 13.4 16.8 - Mar 2023 Mar 2024 Mar 2023 Mar 2024 Fixed Deposits Demand Deposits SME Market Share * RM’bil Asset Quality 3.40% 3.20% 3.42% 2.99% 3.08% 9.2% 9.3% 9
Slide 28: Asset Under Management and Market Positions
Asset Under Management and Market Positions 28 28 RM’bil Asset Under Management Market YTD Mar 2024 Ranking Share Y-o-Y : +9.9% Equities Broking: - By value 8.1% 4th 52.3 - By volume 8.1% 4th 47.6 8.3 8.1 11.2 Debt Capital Markets: 9.1 - MYR sukuk 11.3% 3rd - Total MYR bonds (Conventional 13.1% 3rd
Slide 29: Investment Banking – Notable Deals
Investment Banking – Notable Deals 29 29 CF/ECM DCM M&A Kumpulan Perangsang Selangor Berhad USD57,463.6 mil Pengurusan Air SPV Berhad Divestment by Bold Approach Sdn Bhd, a wholly-owned Eupe Corporation Berhad Issuance of RM1.1 bil Sukuk Murabahah under its subsidiary of Kumpulan Peransang Selangor
Slide 30: Islamic Banking
Islamic Banking 30 30 PBT Gross Financing RM’mil RM’bil Y-o-Y: -4.1% Y-o-Y: +2.1% 90.0 80.0 70.0 60.0 50.0 40.0 30.0 82.8 84.5 20.0 259.7 249.0 10.0 - Mar 2023 Mar 2024 Q1 2023 Q1 2024 Market 9.9% 9.3% Share Gross Financing/ Asset Quality Total Gross Financing (Domestic) RM’bil 1.38% 1.41% 1.45% 1.4
Slide 31: RHB Bank Singapore
RHB Bank Singapore 31 31 SGD’mil PBT Loans, Deposits & Total Assets SGD’bil Y-o-Y: +89.1% 35.0 30.0 25.0 20.0 13.1 15.0 29.1 10.7 9.2 10.0 7.0 7.1 8.1 5.0 15.4 - Q1 2023 Q1 2024 MarMar 2023 Mar Mar 2024 2023 2024 Gross Loans Deposits Total Assets Gross Impaired Loans Ratio Credit Charge Ratio 1.10%
Slide 32: Overseas Loans
Overseas Loans 32 32 Mar Dec Mar RM’bil YTD Y-o-Y 2023 2023 2024 Overseas Operations 29.2 32.8 34.2 4.3% 17.1% Singapore 23.3 27.1 28.4 4.8% 21.9% Cambodia 3.5 3.5 3.6 1.7% 2.9% Others* 2.4 2.1 2.2 1.9% -8.7% of which: Thailand 2.0 1.7 1.7 0.4% -14.4% Brunei 0.2 0.2 0.2 -2.8% 10.5% Indonesia 0.1 0.1