Rhb Bank Bhd. · MYX:RHBBANK
Rhb Bank Bhd — Shareholder Meeting (May 2023)
29 slides from Rhb Bank Bhd's shareholder meeting presentation, May 10, 2023
Slide 1: RHB Bank Berhad 57th Annual General Meeting
RHB BANK BERHAD 57th ANNUAL GENERAL MEETING Mohd Rashid Mohamad 10th May 2023
Slide 2: Key Highlights FY2022 Performance Review Strategy Update
1. Key Highlights 2. FY2022 Performance Review 3. Strategy Update 4. Community Engagement Initiatives Update 5. Customer Experience (CX) Update 6. Summary & Outlook
Slide 3: Key Highlights
Key Highlights
Slide 4: Highlights of FY2022
Highlights of FY2022 4 Achieved a record high net profit FY2022 Key Highlights of RM2.71 billion, up 3.4% YoY ▪ ROE at 9.7% ▪ Maintained sound fundamentals with strong capital and liquidity levels Net Profit ▪ FY2022 dividend amounts to 40 sen per share with payout ratio of 62.5% +3.4% ▪ Sustained E
Slide 5: FY2022 Performance Review
FY2022 Performance Review
Slide 6: FY2022 Performance Review
FY2022 Performance Review 6 RHB delivered a resilient FY2022 performance supported by higher net fund based income and lower ECL 1 Improvement on Income Total Income Net Fund Based Income Non-Fund Based Income (RM bil) (RM bil) (RM bil) +6.7% +8.6% -10.6% 8.31 6.38 2.16 7.79 5.87 1.93 FY2021 FY2022
Slide 7: Net fund based income growth supported by OPR hikes and robust loans growth
Net fund based income growth supported by OPR hikes and robust loans growth; 7 NIM strengthened by 4 bps to 2.24% in FY2022 3 Net Fund Based Income Y-o-Y: 18.3% RM’ bil Y-o-Y : 33.8% 11.35 9.59 Y-o-Y: 8.6% 5.87 6.38 4.97 3.72 FY2021 FY2022 Fund Based Income Fund Based Expenses Net Fund Based Income
Slide 8: Non-fund based income impacted by lower fee income
Non-fund based income impacted by lower fee income, insurance underwriting surplus and net trading 8 and investment income; However, customers fee related income grew 7.7% Y-o-Y 4 Non-Fund Based Income +7.7% growth in customers fee related income* of which: -18.1% decline in Total Fee Income Y-o-Y,
Slide 9: Operating expenses grew 5.5%; CIR improved to 44.7%
Operating expenses grew 5.5% mainly from higher personnel and establishment costs; 9 With positive JAWS, CIR improved to 44.7% 5 Cost Management Y-o-Y : 5.5% RM’ mil 3,717 3,522 Admin & General Expenses 381 2.7% 371 Marketing Expenses 251 3.8% 241 Establishment Cost 835 8.1% 773 Personnel cost 2,138
Slide 10: Loans grew 6.9% Y-o-Y
Loans grew 6.9% Y-o-Y led mainly by mortgage, auto finance, SME, Singapore and Cambodia; 10 Portfolio rebalancing improved with Retail & SME composition at 63% (FY2022) vs 61% (FY2018) 6 Growth in Gross Loans Of which: 6.9% growth in Total Gross Loans Y-o-Y; Y-o-Y Of which: % 5.3% RM’ bil 6.9% 7.3%
Slide 11: Deposits grew 3.9% Y-o-Y; CASA at 29.2%
Deposits grew 3.9% Y-o-Y attributed to growth in FD and CASA of 5.0% and 1.3% respectively; 11 CASA composition at 29.2% for FY2022 8 Growth in Deposits & Steady CASA Ratio Deposits by Type Y-o-Y FY2021 FY2022 (RM’bil) % Fixed DepositsN1 153.1 160.7 +5.0% CASA 65.6 66.4 +1.3% RHB’s CASA growth excee
Slide 12: Credit cost improved; GIL ratio 1.55%
Credit cost improved to 15 bps from lower ECL on loans and higher bad debts recovered; 12 GIL ratio at 1.55% while LLC remained healthy at 112.8% 9 Improved Credit Cost & Maintained Healthy LLC 93.3% 85.7% 119.7% 122.4% 112.8% 150 .0% 100 .0% 50. 0% 0.0 % 2.06% 1.97% -50.0% 1.71% -100.0% 1.49% 1.55%
Slide 13: Operating performance improved over the years
Operating performance improved over the years; remained resilient in FY2022 amid persistently 13 challenging operating environment 10 Improved Fundamentals Return on Equity Cost-to-Income Ratio 49.3% 10.3% 10.3% 9.6% 9.7% 48.0% 7.7% 47.1% 45.2% 44.7% 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
Slide 14: FY2022 total dividend of 40 sen per share
FY2022 total dividend of 40 sen per share represents 62.5% payout ratio 14 The Board has declared a second interim dividend of 25 sen per share with 20 sen cash and 5 sen subject to DRP. Together with the first interim dividend paid, total dividend of 40 sen per share represents 62.5% payout for FY2
Slide 15: Strategy Update
Strategy Update
Slide 16: TWP24 – Targets
Recap: Our corporate strategy, Together We Progress 2024 (TWP24) has three strategic 16 objectives 16 TWP24 – Targets • Build deeper relationships with our target customers (e.g. Affluent, Mass Be Affluent, SME, LC, MC) 11.5% Everyone’s • Embed our presence across all financial needs through persona
Slide 17: TWP24 – FY2022 Highlights
In FY2022, we have achieved encouraging results and are on track to meet our TWP24 targets 17 17 TWP24 – FY2022 Highlights FY2022 Achievements +7.2% Retail Loans +10.0% Mortgage Loans +12% Reflex Customers vs. FY2021 Be vs. FY2021 Driven by innovative solutions vs. FY2021 (to 150k customers) 9.7%* E
Slide 18: Community Engagement Initiatives Update
Community Engagement Initiatives Update
Slide 19: Community Engagement Initiatives (1/3) – Various Initiatives
Community Engagement Initiatives (1/3) – Various Initiatives 19 ▪ RHB Money Ma$ter Programme delivering financial literacy programmes to more than 33,000 secondary students to-date. ▪ RHB X-Cel Academic Excellence programme has benefited more than 6,000 underprivileged students from the B40 income s
Slide 20: Community Engagement Initiatives (2/3) – Art With Heart
Community Engagement Initiatives (2/3) – Art With Heart 20 ▪ Provides emerging artists with a platform to showcase their art pieces and engage with potential buyers and collectors. ▪ Have showcased an artist line-up comprising of creative talents from various backgrounds, including differently-abled
Slide 21: Community Engagement Initiatives (3/3) – #JomBiz
Community Engagement Initiatives (3/3) - #JomBiz 21 ▪ Launched in the 4th quarter of 2022 as a pilot programme, RHB #JomBiz is aimed at helping MSMEs to upscale and help their businesses grow so they’re able to sustain and keep resilient during the challenging economic situation. ▪ Programme enhance
Slide 22: Continuous Awareness Programme on Fraud & Scam
Continuous Awareness Programme on Fraud & Scam 22 Frauds and scams are on the rise as the tactics employed by scammers are becoming more sophisticated. RHB has created awareness through various platforms to raise public awareness on frauds and scams. • RHB Website • Social Media • Mobile Banking & I
Slide 23: Customer Experience (CX) Update
Customer Experience (CX) Update
Slide 24: 2022 CX Performance
2022 CX Performance 24 Complaints Customer Happy Net Promoter NPS Industry Customer Request Resolved Within 3 With Complaints Score Ranking Fulfillment Days Resolution +12 3rd 97% 97% 83% As we work towards the next phase of growth, we are This is largely driven by the RHB Way Service Culture, placi
Slide 25: Build Leading and Next Generation Customer Experience
Build Leading and Next Generation Customer Experience 25 Enable end-to-end delivery of TWP24 promising Leading Customer Journeys Experience and Hyper-Personalised Journey 1 2 3 Re-energise RHB Way Service Culture Elevate Service Levels especially for Deliver Market Leading & Be Proactive to Serve TW
Slide 26: Summary & Outlook
Summary & Outlook
Slide 27: Outlook for FY2023
Outlook for FY2023 27 ▪ Malaysia economy is projected to grow by 5.0% year-on-year in 2023 ▪ This is supported by domestic demand which is expected to remain resilient, underpinned by strong consumer spending as the labour market and wages continue to show signs of improvement ▪ Nevertheless, risks
Slide 28: Concluding Remarks
Concluding Remarks 28 ▪ The Group delivered a commendable performance for FY2022 despite continued challenges in operating environment ▪ The Group remains prudent in managing asset quality and, at the same time, committed in supporting the vulnerable borrowers get back on the recovery path ▪ We will
Slide 29: Thank You
THANK YOU www.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 needs of any specific audience. The content furthermore is believed t