Rhb Bank Bhd. · MYX:RHBBANK
Rhb Bank Bhd — Shareholder Meeting (April 2019)
27 slides from Rhb Bank Bhd's shareholder meeting presentation, Apr 24, 2019
Slide 1: RHB Bank Berhad 53rd Annual General Meeting
RHB BANK BERHAD 53" AN NUAL GENERAL MEETING & * fie, 28 SS fu shee wes Soke ‘ . ae :
Slide 2: RHB Bank Berhad 53rd Annual General Meeting
RHB BANK BERHAD 53rd ANNUAL GENERAL MEETING Khairussaleh Ramli 24th April 2019
Slide 3: Agenda
1. Key Highlights 2. FY2018 Performance Review 3. Strategy Update 4. Sustainability Update 5. Concluding Remarks
Slide 4: Key Highlights
Key Highlights
Slide 5: Highlights of FY2018
Highlights of FY2018 5 Fundamentals have strengthened; comfortable capital position, ample liquidity and improved asset quality Achieved record high net profit of RM2.31 billion, 18.2% Y-o-Y increase ROE improved to double digit, first since 2015, at 10.3% Enhanced dividend policy to a minim
Slide 6: Highlights of FY2018
Highlights of FY2018 6 Execution of FIT22 strategy is gaining traction and remains anchored on three priorities: Strengthening Malaysia as the core with target key segments to win in; Focusing on niche overseas; and Building a winning operating model through the AGILE way of working, digital
Slide 7: FY2018 Performance Review
FY2018 Performance Review
Slide 8: 18.2% growth in net profit for FY2018
FY2018 Performance Review 8 We delivered 18.2% growth in net profit for FY2018 from higher net fund based income and non- fund based income and lower allowances for expected credit losses, while closely managing our overheads Total Fund Based Non-Fund Based Income Income Income +6.6% +8.5% +1.8% 201
Slide 9: Net fund based income growth; NIM improved
FY2018 Performance Review 9 Loans growth coupled with active management of funding and liquidity resulted in strong Y-o-Y net fund based income growth; net interest margin (NIM) improved RM’ bil Y-o-Y: +9% 10.82 10.04 5.49 5.88 4.55 4.94 2017 2018 Fund Based Income Fund Based Expenses Net Fund Based
Slide 10: Marginal growth in non-fund based income
FY2018 Performance Review 10 Marginal growth in non-fund based income supported mainly by higher treasury income from net forex gain and trading & investment income Non Fund Based Income Y-o-Y RM’mil 2017 2018 Change Total Fee Income (A) 1,131 1,070 -5% 29% 27% Insurance Underwriting 190 165 -13% Su
Slide 11: Operating expenses tightly managed; CIR improved
FY2018 Performance Review 11 Operating expenses tightly managed; grew 5.4% from higher personnel cost and IT-related expenses in line with the Group’s investments in IT and Digital Capabilities; CIR improved to 49.3% Y-o-Y: +5% RM’ mil 3,358 3,184 -0.5% -2% 367 Administration & 368 +6% 245 General E
Slide 12: Group loans grew 5.5% year-on-year
FY2018 Performance Review 12 Group loans grew 5.5% year-on-year, though Malaysia grew higher at 5.6% mainly from mortgage and SME; Further progress achieved in portfolio rebalancing Loans, Advances and Financing % Composition 2017 2018 (RM' bil) Change 2017 2018 Retail Banking 76.3 84.6 +11.0% 47.6%
Slide 13: Total deposits grew 7.2% Y-o-Y
FY2018 Performance Review 13 Total deposits grew 7.2% Y-o-Y supported by MMTD & FD growth; CASA ratio stood at 25.9% as competition remained intense Deposits by Type 2017 2018 % Change (RM’bil) Fixed DepositsN1 116.4 132.5 +14% CASA 50.5 46.4 -8% Demand Deposits 40.6 36.3 -11% Savings Deposits 9.9 1
Slide 14: Asset quality improved
FY2018 Performance Review 14 Asset quality improved from more active account management, credit charge ratio improved further and loan loss coverage maintained above 100% RHB Capital RHB Bank 150 .0% 101.6% 103.0% 83.3% 74.7% 100 .0% 61.1% 4.5 0 4.4 0 2.43% 2.23% 50. 0% 2.06% 4.3 0 4.2 0 4.1 0 4.0 0
Slide 15: Investment Banking - Major Transactions
Investment Banking - Major Transactions 15 M&A DCM ECM Air Asia Group Berhad (“AAGB”) Edra Energy Sdn Bhd SP Setia Berhad RM4,647.0 mil RM5.085 bil issuance out of RM5.28 bil RM2,261.0 mil Disposal of AAGB’s aircraft leasing Sukuk Wakalah Programme Rights Issue operations Joint Lead Manager Joint Un
Slide 16: Capital position remained strong
FY2018 Performance Review 16 Capital position at both Group and entity levels remained strong RHB Bank Group RHB Bank 20. 0% 20. 0% 18.8% 18. 0% 18. 0% 16. 0% 17.2% 16. 0% 16.8% 14. 0% 15.5% 15.7% 14. 0% 15.9% 13.9% 14.2% 13.1% 13.3% 13.4% 13.5% 12. 0% 12. 0% 10. 0% 10. 0% 8.0 % 8.0 % 6.0 % 6.0 % 4.
Slide 17: Proposed final cash dividend of 13 sen per share
FY2018 Performance Review 17 The Board has proposed a final cash dividend of 13 sen per share; Together with the interim dividend paid, total dividend of 20.5 sen per share for FY2018 represented 35.7% payout; Dividend payout will be at least 30% of net profit moving forward Dividend Per Share (sen)
Slide 18: Strategy Update
Strategy Update
Slide 19: FIT22 Key Highlights in FY2018
FIT22 Key Highlights in FY2018 19 Fund our Journey Grow Affluent, SME Continue to win in Increase share of wallet: Boost retail Rebalance financing leveraging on SME the SME space Large Caps & Mid Caps deposits portfolio customer base Fee Income Market Share Premier Premier SME Large Cap 23.4% (20
Slide 20: We will use digital at the core of our banking business
We are not going to be a digital bank, but we will use digital at the core of our banking 20 business Bringing Digital Banking to Malaysian Consumers and Businesses Description Progress RHB Mobile Banking App unique features, • Launched on 18 Apr 2019 user friendly functionalities; easy to use R
Slide 21: AGILE leap has produced tangible results
AGILE leap has produced tangible results 21 • Transforming RHB’s operating model to foster innovation, productivity, customer centricity and employee engagement • • AGILE work culture: customer focus, output orientation, adaptability and empowerment Putting customer journeys at the heart of product
Slide 22: Sustainability Update
Sustainability Update
Slide 23: Sustainability has become a key focus area
Sustainability has become a key focus area 23 • The Group developed a Sustainability Framework which outlines 5 sustainability commitments and supports 9 UN Sustainable Development Goals; as well as identified 17 sustainability material matters GOVERNANCE ECONOMIC ENVIRONMENT SOCIAL Drive Ethical &
Slide 24: Concluding Remarks
Concluding Remarks
Slide 25: Concluding Remarks
Concluding Remarks 25 1 The Group recorded highest profit ever in 2018 2 Results demonstrate the Group’s strengths and resilience operating under challenging environment and good progress in FIT22 implementation 3 RHB fundamentals are strong - high capital levels, healthy liquidity position, a
Slide 26: RHB Touch Hearts Program
RHB TOUCH HEARTS PROGRAM 26
Slide 27: 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