Rhb Bank Bhd. · MYX:RHBBANK
Rhb Bank Bhd — RHB Banking Group — H1 2012 Earnings Presentation
30 slides from Rhb Bank Bhd's earnings presentation, Aug 27, 2012
Slide 1: Investor Presentation: 1st Half 2012 Financial Results
Investor Presentation 1st Half 2012 Financial Results Mr. Kellee Kam Group Managing Director RHB Banking Group 27 August 2012
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: Agenda
AGENDA Key Corporate Updates 1st Half 2012 Financial Results Key Business Highlights Summary
Slide 4: Key Corporate Updates (1/3)
Key Corporate Updates (1/3) Easy by RHB: o 245 outlets todate, loans and advances totaling RM4.3 bil Business Development o Launched Easy-Smart Debit Card: Malaysia’s 1st and only debit card that helps customers to save as they spend • Easy-Smart Account 1 for Retail spending • Easy-Smart Account
Slide 5: Key Corporate Updates (2/3)
Key Corporate Updates (2/3) Approvals: Proposed Approvals Obtained Approvals Outstanding Acquisition of MOF through BNM Shareholders (EGM on 30 August 2012) OSK Investment Bank Labuan Financial Services Authority Monetary Authority of Singapore Bursa Securities Bapepam-LK Indonesia Securities Comm
Slide 6: Key Corporate Updates (3/3)
Key Corporate Updates (3/3) Proposed Acquisition of OSK Investment Bank (cont’d) Timeline to completion Sept - Dec Jan - Mar Apr May Jun/Jul Q3 Q4 2011 2012 2012 2012 2012 2012 2012 • 29 Sept: BNM application to • 11 Jan: Submission • 27 Apr: Approval • 24 May: Approval • Regulatory submissions •
Slide 7: Agenda
AGENDA Key Corporate Updates 1st Half 2012 Financial Results Key Business Highlights Summary
Slide 8: RHB Banking Group Scorecard 2012
RHB Banking Group Scorecard 2012 Top level indicators Target 2012 June 2012 Achievement ROE >14.0% 14.8%N1 ROA 1.2% 1.1%N1 Gross Impaired Loans 3.0% 3.3% Ratio Loans Growth >12% 13.5%N1 Deposits Growth >12% 4.0%N1 Cost to Income Ratio <44% 45.3% International Contribution 10% 5% better worse N1: Ann
Slide 9: Key Take-Aways: 1st Half 2012 Results
Key Take-Aways: 1st Half 2012 Results PBT at RM1.184 bil and net profit at RM889.4 mil up 6% 1st Half 2012 EPS at 40.3 sen, up 4% Results Annualised ROE at 14.8% and ROA at 1.1% Total assets increased by 4% to RM159 bil Revenue growth in all business segments Business Gross loans up 14%
Slide 10: Financial Results
Financial Results Higher other operating income mainly due to higher Q-o-Q Y-o-Y Q2 Q1 H1 H1 RM mil Change Change fee income, higher trading gain and MTM gain on 2012 2012 % 2012 2011N1 % derivatives Net Interest Income 732 709 3 1,441 1,419 2 Higher Islamic Banking income mainly due to higher n
Slide 11: Key Underlying Profit Drivers
Key Underlying Profit Drivers Net Interest Income (2%) Other Operating Income (12%) RM mil RM mil 23 -25 47 -9 254 -232 34 653 1,419 1,441 583 H1 2011 Interest income Interest expense H1 2012 H1 2011 Fee Gain on MTM gain Net forex Others H1 2012 income securities on gain derivatives ♦ NII higher by
Slide 12: Financial Position
Financial Position Total assets expanded by 4% to RM159 bil Change RM mil June 2012 Dec 2011N1 mainly due to higher gross loans % Net loans and investment portfolio represents Total Assets 158,509 152,628 4 82% of total assets vs 80% in Dec 2011 Total Financial Gross loans up 14% y-o-y driven
Slide 13: Loans, Advances and Financing
Loans, Advances and Financing Change Gross Loans by Purpose: Composition Y-o-Y RM mil June Dec June for H1 Change 2012 2011N1 2011N1 2012 % 100% % Working Capital 23,012 20,360 21,363 13 8 90% 21% 22% Purchase of Residential 21,199 20,604 19,955 3 6 80% Property Purchase of Transport 11,180 11,743 1
Slide 14: Loans, Advances and Financing by SBG
Loans, Advances and Financing by SBG Change for Y-o-Y RM mil June 2012 Dec 2011N1 June 2011N1 H1 2012 Change % % Retail 41,114 40,688 39,734 1 3 Business Banking 11,377 10,519 10,488 8 8 CIB 31,740 28,788 25,662 10 24 Islamic 14,745 13,060 11,721 13 26 Global Financial Banking 5,016 4,383 3,903 14 2
Slide 15: Loans Profile
Loans Profile Composition of Loan Book - Composition of Loan Book - by Type of Customer by Interest/Profit Rate Sensitivity 2% 1% 1% 7% 5% 6% 6% 7% Fixed Rate 6% Variable 31% 5% 11% 10% 11% Rate 69% 36% 34% 28% 27% 26% 28% Composition of Loan Book - 17% 16% 13% 12% 12% by Strategic Business Group 15
Slide 16: Customers Deposits
Customers Deposits Customers Deposits Customers Deposits : Composition Change Y-o-Y June Dec June for 100% RM mil Change 5% 6% 2012 2011 2011 H1 2012 % % 90% Fixed Deposits 89,232 87,946 76,814 1 16 19% 19% 80% of which: MMTD 16,718 23,259 26,056 -28 -36 Demand Deposits 21,906 21,436 19,850 2 10 70%
Slide 17: Loans and Deposits
Loans and Deposits Loans Customers Deposits RM bil 20% RM bil 16% 14% 9% 13% 10% 32% 23% 12% 15% 11% 15% 13% 14% 13% 7% 11% 8% 1% 14% 13% 9% 7% 97.4 104.0 -2% 83.7 115.9 118.2 63.2 69.6 84.8 94.4 56.8 75.8 74.0 2007 2008 2009 2010 2011^ June 2012* 2007 2008 2009 2010 2011 June 2012* Gross Loans Loan
Slide 18: Asset Quality
Asset Quality Gross Impaired Loans Ratio decreased by 0.26% to 3.33% Gross Impaired Loans Ratio by Key Purpose (%) 2010 2011^ June 2012 4.39 3.59 3.59 6.6 6.1 5.9 4.12 3.33 Working Capital 3.90 3.66 3.44 3.36 3.17 6.2 5.3 4.9 2.89 2.80 Purchase of Residential 2.68 2.54 Property 2.23 Dec 10 Mar 11 Ju
Slide 19: Capital Position
Capital Position RHB Capital RHB Bank Times RM bil 0.7 152% 15.8% 16.0% 147% 149% 150% 20.0 15.0% 14.6% 17% 146% 144% 14.0% 0.58 13.0% 12.3% 12.1% 0.6 11.5% 11.5% 13% 0.53 0.54 0.54 15.0 10.8% 0.52 0.50 9.9% 130% 0.5 10.1 9% 9.3 9.3 10.0 7.9 8.4 8.4 0.4 5% 4.3 5.0 3.3 3.3 3.4 3.6 3.5 0.3 1% 0.2 80%
Slide 20: Capital Position - RHB Bank Group
Capital Position - RHB Bank Group Main development in H1 2012: RM mil June 2012 Dec 2011 o Issuance of RM750 million sub-notes Total equityN1 10,940 10,011 o Increase of regulatory concession in Credit Conversion Factor Others (1,023) (1,084) (“CCF”) for undrawn credit facilities Core Tier 1 Capit
Slide 21: Return to Shareholders
Return to Shareholders Market Capitalisation and Share Price Trend Dividend Trend - 2007 to 2012 30,000 10 Final Interim 8.72 21.38% 17.41% 25,000 7.48 7.40 8 17.45% 20,000 5.85 5.30 6 10.6% 15,000 18,778 3.90 16,492 16,545 3.42 4 8.6% 10,000 2.21 12,598 11,413 5,000 8,399 2 6,236 4,030 5.0% 9.0% 5.
Slide 22: Agenda
AGENDA Key Corporate Updates 1st Half 2012 Financial Results Key Business Highlights Summary
Slide 23: Retail Business Performance
Retail Business Performance Mortgage Personal Use RM bil RM bil 6.9% 6.6% 6.7% 7.4% 7.5% 7.3% 7.1% 7.4% 7.7% 7.3% 7.1% 5.7% 5.0 5.3 18.8 20.5 21.2 3.5 14.1 16.0 2.7 13.2 2.4 2.6 2007 2008 2009 2010 2011 June 2012 2007 2008 2009 2010 2011 June 2012 Mortgage Loans Market Share Personal Use Market Shar
Slide 24: Easy by RHB
Easy by RHB Number of Outlets Asset Composition - June 2012 245 236 25 P/Loan 25 50 24% 50 111 40 42 ASB 7 76% 19 32 121 128 14 53 2 July 2009 Dec 2009 Dec 2010 Dec 2011 June 2012 Easy Standalone Tesco POS LRT Financial Performance Gross Loans 4,5 00 16 0.0% 4,4 50 5.9% 4,4 00 RM mil 15 5.0% 4,3 50
Slide 25: Insurance Business Performance
Insurance Business Performance General Insurance - Gross Premium Bancassurance - Gross Premium RM mil ^ RM mil 3.0% 2.7% 2.3% 2.3% 2.1% 1.9% 383 278 305 271 232 234 143 200 110 125 62 67 168 63 76 2007 2008 2009 2010 2011 H1 2012 2010 2011 H1 2012 ^ As at Mar 2012 Gross Premium Market Share Credit R
Slide 26: Domestic Market Share - CIB
Domestic Market Share - CIB H1 2012 FY 2011 H1 2011 Market Market Market Rank Rank Rank Share Share Share Mergers & Acquisitions 10.1% 8th 16.3% 3rd 30.1% 1st Equities ^ nil nil 6.8% 4th 5.5% 4th Debt Capital Market* 11.4% 3rd 9.7% 4th 8.6% 5th Broking (By Value) 5.9% 6th 8.0% 2nd 7.0% 3rd ^ IPOs, R
Slide 27: Islamic Business Performance
Islamic Business Performance PBT Loans 16 0.0% 15 5.0% RM mil 15 0.0% 14 5.0% RM mil 14 0.0% 21 5 13 5.0% 13 0.0% 12 5.0% 12 0.0% 11 5.0% 11 0.0% 10 5.0% 16 5 10 0.0% 95 .0% 90 .0% 162 85 .0% 80 .0% 75 .0% 11 5 70 .0% 211 65 .0% 14,745 13,060 60 .0% 55 .0% 50 .0% 45 .0% 65 40 .0% 9,036 114 35 .0% 30
Slide 28: Agenda
AGENDA Key Corporate Updates 1st Half 2012 Financial Results Key Business Highlights Summary
Slide 29: Summary
Summary 1 Satisfactory H1 2012 results Strive towards achieving stated targets Loans pipeline remained healthy and supported by a resilient domestic economic environment 2 Remained cautious and vigilant in risk management as external environment continue to post challenges 3 Focus on completing
Slide 30: END
END INVESTOR RELATIONS CONTACT: Ms Yap Choi Foong Group Financial Controller +(603) 9280 2463 cfyap@rhb.com.my