Slide 1: Investor Presentation 1st Quarter 2013 Financial Results
Investor Presentation 1st Quarter 2013 Financial Results Mr. Kellee Kam Group Managing Director RHB Banking Group 29 May 2013
Slide 2: Agenda
AGENDA Executive Summary 1st Quarter 2013 Financial Results Integration Updates Summary
Slide 3: Executive Summary
Executive Summary ♦ Revenue increased by 18.5% y-o-y to RM1.4 billion, driven by top-line gains and the consolidation of OSK Investment Bank results ♦ Non-interest income to total income ratio at 33.0%, maintaining the momentum of Q4 2012 ♦ Operating profit before allowances up 2.2% to RM644.5 milli
Slide 4: RHB Banking Group Scorecard 2013
RHB Banking Group Scorecard 2013 Top Level Indicators Target 2013N1 Q1 2013 ROE >13.0% 9.3%N2 Loan Growth 12% 1.9%N3 Deposits Growth 10% -2.2%N3 Gross Impaired Loans <2.9% 2.95% Ratio Cost to Income ratio <50% 52.7% N1: Target for 2013 is without Bank Mestika International Contribution 10% 11.3% N2:
Slide 5: Agenda
AGENDA Executive Summary 1st Quarter 2013 Financial Results Integration Updates Summary
Slide 6: Financial Results
Financial Results Y-o-Y Q-o-Q On a y-o-y basis: Q1 Q1 Q4 Change Change ♦ Operating profit up despite lackluster business environment RM mil 2013 2012 2012 % % ♦ PBT down, impacted principally by a one-off impaired account Net Interest Income 779 709 10 774 1 and higher CA due partially to loan growt
Slide 7: Total Income
Total Income Total Income Mix Net Interest Income (RM mil) +10% 222 152 29% 33% 33% 709 779 10% 10% 10% Q1 2012 Interest Interest Q1 2013 61% 57% 57% Income Expense Net interest income higher reflecting higher average lending and deposit balances as the Group continues its growth momentum in Q1 20
Slide 8: Other Operating Expenses
Other Operating Expenses RM mil 718 Total + 38% Composition 520 11% Personnel 418 11% Costs + 26% 331 58% 20% Establishment 146 Costs + 49% 98 Personnel Costs Establishment Costs Marketing Expenses Admin & General Expenses Marketing 76 Expenses + >100% 35 Cost-to-Income Ratio Admin & General 78 Expe
Slide 9: Allowances for Loan Impairment
Allowances for Loan Impairment Movement of Allowances for Loan Impairment (RM mil) Higher allowance for loan impairment due to one-off 5 2 >100% impairment for a particular account, coupled with higher -2 CA 73 155 32 45 Q1 2012 IA CA Recovered Written Others Q1 2013 Off Allowances for Loan Impair
Slide 10: Financial Position
Financial Position ♦ Lower total assets by RM4.5 bil due mainly to lower cash Mar Dec Change and short term funds, partially offset by expansion in net RM mil 2013 2012 % loans and investment portfolio ♦ Gross loans gained further traction: Total Assets 184,556 189,078 -2 • Domestic loans boosted ma
Slide 11: Loans, Advances and Financing
Loans, Advances and Financing Q-o-Q Y-o-Y Mar Dec Mar Change Change RM mil 2013 2012 2012 Gross Loans (RM bil) & Growth (%) % % 25% 22% 300 16% 19% Working Capital 27,079 26,520 19,991 2 35 20% 13% 11% 14% 20% 250 15% 13% 18% 11% 10% 11% 13% 14% 16% 10% 10% 200 Purchase of Residential 22,601 22,155
Slide 12: Loans Profile & Market Share
Loans Profile & Market Share Composition by Type of Customers Gross Loans by Interest/Profit Rate Sensitivity 1% 1% 7% 5% 6% 7% 7% 7% Fixed Rate 5% 11% 30% 11% 10% 10% Variable Rate 34% 28% 70% 27% 26% 28% 29% 17% 16% 13% 12% 11% 11% Domestic Market Share 9.60% 9.5% 9.5% 9.40% 9.3% 43% 44% 45% 43% 4
Slide 13: Loans, Advances and Financing by SBG
Loans, Advances and Financing by SBG Q-o-Q Y-o-Y Mar Dec Mar Change Change RM mil 2013 2012 2012 % % Retail 43,003 42,103 40,954 2 5 Business Banking 11,707 11,695 10,611 - 10 CIB 35,293 35,108 26,210 1 35 Islamic 17,125 16,266 13,373 5 28 Global Financial Banking 6,417 6,302 4,381 2 46 Total Loans
Slide 14: Loans Applications & Approvals
Loans Applications & Approvals Loans Applications - RHB Loans Applications - Industry RM bil % Growth RM bil % Growth 40% 16.4 -5% 195.4 185.7 11.7 5.7 -14% 108.4 86.7 -20% 6.6 10.7 >100% 87.0 99.0 14% 5.1 3M 2012 3M 2013 3M 2012 3M 2013 Loans Approvals - RHB Loans Approvals - Industry RM bil % Grow
Slide 15: Customer Deposits
Customer Deposits Q-o-Q Y-o-Y Mar Dec Mar Customer Deposits Composition Change Change RM mil 2013 2012 2012 % % Fixed Deposits 105,033 108,697 89,067 -3 18 5% 5% of which: MMTD 21,383 23,368 19,763 -8 8 16% 17% Demand Deposits 22,805 22,504 21,396 1 7 Savings Deposits 7,284 6,933 6,551 5 11 17% 16%
Slide 16: Customer Deposits Profile & Market Share
Customer Deposits Profile & Market Share Customer Deposits (RM bil) FD & NID Maturity Structure (RM bil) 108.8 105.1 250 23% 95.8 1.0 0.7 15% 19% 88.1 89.3 89.5 15% 0.6 18.2 15% 12% 18.3 20% 12% 23% 1.5 0.5 0.5 12.3 200 19% 14% 15.8 12.3 11% 10% 14.8 150 14% 8% 8% 9% 7% 0% -2% 100 -4% 82.9 89.6 86.1
Slide 17: Asset Quality
Asset Quality Gross Impaired Loans Ratio (%) by Purpose Gross Impaired Loans Ratio (%) 4.59 Working Capital Purchase of Residential Property 3.59 3.59 3.36 3.33 3.12 2.99 6.1 5.3 2.95 3.9 4.1 4.4 4.3 2.68 2.54 2011 2012 Mar 2013 2011 2012 Mar 2013 2.23 2.13 2.03 1.99 Purchase of Non- Personal Use De
Slide 18: Capital Position
Capital Position RM bil RHB Bank RM bil RHB Investment 16.0% 1.4 41.7% 1.4 46% 41.8% 46% 25.0 15.1% 17% 15.1% 38.2% 13.9% 25.0 14.4% 17% 1.2 33.9% 1.2 41% 35.5% 41% 12.6% 11.9% 36% 36% 20.0 20.0 13% 11.5% 11.5% 13% 1.0 1.0 10.5% 31% 31% 11.2% 34.2% 11.8% 10.9% 30.3% 26% 30.0% 26% 10.8% 0.8 0.8 15.0
Slide 19: Capital Position - RHB Bank Group
Capital Position - RHB Bank Group Adopted BNM Basel III capital adequacy requirements which came into effect on 1 January Capital Development: Q1 2013 2013 0.1% 0.5% 0.3% 15.4% 14.7% Total capital ratio down mainly due to application of 10.9% 10.7% transitional arrangement with the 10% phased-ou
Slide 20: Return to Shareholders
Return to Shareholders Market Capitalisation Dividend Per Share 30,000 8.72 8.45 10 25,000 7.48 7.69 8 20,000 5.85 5.30 21,076 6 18,778 19,180 17.41% 15,000 3.90 21.38% 16,492 4 10.6% 17.45% 16.09% 10,000 12,598 11,413 8.6% 5,000 8,399 2 5.0% 9.0% 5.0% 5.0% 8.0% 6.0% 0 0 2007 2008 2009 2010 2011 201
Slide 21: Agenda
AGENDA Executive Summary 1st Quarter 2013 Financial Results Integration Updates Summary
Slide 22: Update on Integration
Update on Integration Synergies and Integration Costs Recap: Estimated Synergies Over 3 Years 350 324 Legal Day 1 completed on 13 April 2013 15 300 34 Single Platform Day 1 activities on track 250 and expected to be completed by year 200 149 end 112 150 5 63 5 17 275 Total integration expenses
Slide 23: Agenda
AGENDA Executive Summary 1st Quarter 2013 Financial Results Integration Updates Summary
Slide 24: Summary
Summary Slow start to the year: 1 ♦ Q1 2013 performance fall short of targets, focused on making up the pace with healthy loan pipelines, capital market transaction mandates and more prudent approach to cost Pace of synergy realisation to pick up post April given expected more 2 active capital marke
Slide 25: End
END INVESTOR RELATIONS CONTACT: Ms Yap Choi Foong Head, Investor Relations +(603) 9280 2463 cfyap@rhb.com.my 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 th
Slide 26: Appendix
Appendix Key Business Highlights
Slide 27: Retail Business Performance
Retail Business Performance Mortgage Personal Use 7.4% 7.8% 7.9% 7.1% 7.4% 7.7% 7.3% 6.6% 6.7% 7.0% 6.9% 5.7% 5.9 5.8 20.6 22.2 22.6 5.0 14.1 16.0 18.8 2.6 2.7 3.5 2008 2009 2010 2011 2012 Mar 2013 2008 2009 2010 2011 2012 Mar 2013 Mortgage Loans (RM bil) Market Share Personal Use (RM bil) Market Sh
Slide 28: Easy by RHB
Easy by RHB Number of Outlets Asset Composition 236 245 246 25 25 25 50 50 50 P.Loan 111 40 42 43 26% 7 19 ASB 32 121 128 128 74% 14 53 2 July 2009 Dec 2009 Dec 2010 Dec 2011 Dec 2012 Mar 2013 Easy Standalone Tesco POS LRT Financial Performance Gross Loans (RM bil) 9.5% 16 0.0% 15 5.0% 8.4% 15 0.0%
Slide 29: CIB - Market Share
CIB - Market Share Malaysia Capital Market YTD Mar 2013# FY 2012# FY 2011 Market Market Market Ranking Ranking Ranking Share Share Share Debt Capital Market * 15.5% 4th 14.9% 4th 9.7% 4th Mergers & Acquisitions 3.4% 9th 7.1% 11th 16.3% 3rd Equities Capital Market ^ 7.3% 3rd 2.6% 11th 6.8% 4th # Comb
Slide 30: CIB - 2012 Awards
CIB - 2012 Awards RHB Investment Bank Berhad RHB Research Institute ALPHA SOUTHEST ASIA DEALS & PROJECT FINANCE SOLUTIONS AWARDS INTERNATIONAL AWARDS ASIAMONEY BROKERS POLL 2012 STARMINE ANALYST AWARDS 2012 Best Mid-Cap Corporate Finance Asia Pacific Project Bond of the Year MALAYSIA MALAYSIA House
Slide 31: Islamic Business Performance
Islamic Business Performance PBT (RM mil) 160.0% Gross Loans 155.0% 150.0% 145.0% 140.0% 6.5% 6.9% 7.0% 215 5.6% 135.0% 130.0% 125.0% 4.5% 120.0% 115.0% 110.0% 105.0% 165 100.0% 95.0% 90.0% 85.0% 80.0% 75.0% 115 70.0% 211 209 65.0% 60.0% 17.1 55.0% 50.0% 16.3 13.1 45.0% 40.0% 65 35.0% 87 30.0% 9.0 9
Slide 32: RHB Bank Singapore Business Performance
RHB Bank Singapore Business Performance 50 PBT (SGD mil) 160.0% 155.0% Loans, Deposits & Total Assets (SGD bil) 150.0% 145.0% 45 140.0% 135.0% 4.6 130.0% 125.0% 40 120.0% 115.0% 110.0% 4.4 105.0% 35 100.0% 95.0% 90.0% 30 85.0% 80.0% 3.4 3.2 25 75.0% 70.0% 65.0% 2.7 2.9 2.8 2.3 60.0% 55.0% 20 50.0% 4
Slide 33: Business Banking and SME
Business Banking and SME Gross Loans (RM bil) 14 160.0% 155.0% 150.0% 18 Customer Deposits (RM bil) 160.0% 155.0% 145.0% 150.0% 140.0% 145.0% 135.0% 140.0% 12 16 130.0% 135.0% 125.0% 130.0% 120.0% 125.0% 115.0% 120.0% 14 110.0% 115.0% 10 105.0% 110.0% 100.0% 105.0% 95.0% 100.0% 12 90.0% 95.0% 85.0%