Rhb Bank Bhd. · MYX:RHBBANK
Rhb Bank Bhd — RHB Capital Berhad — H1 2013 Earnings Presentation
37 slides from Rhb Bank Bhd's earnings presentation, Aug 30, 2013
Slide 1: Investor Presentation 1st Half 2013 Financial Results
Investor Presentation 1st Half 2013 Financial Results Mr. Kellee Kam Group Managing Director RHB Banking Group 30 August 2013
Slide 2: Agenda
AGENDA Executive Summary 1st Half 2013 Financial Results Integration Updates Summary
Slide 3: Executive Summary
Executive Summary 1st Half 2013 Results ♦ Revenue increased by 20.6% to RM2.8 billion, broad base growth recorded by all business segments ♦ Good momentum in non-interest income, ratio to total income at record high of 33.5% ♦ Operating profit before allowances up 4.8% to RM1.3 billion ♦ Pre-tax pro
Slide 4: RHB Banking Group Scorecard 2013
RHB Banking Group Scorecard 2013 Top Level Target June Indicators 2013 2013 ROE >13.0% 9.9% N1 Loans 12% 5.2% N2 Growth Deposits 10% -1.4% N2 Growth Gross Impaired <2.9% 3.15% Loans Ratio Cost to Income Ratio <50% 52.5% International 11% 10% Contribution N1: Annualised N2: Changes for 6M 2013, not a
Slide 5: Agenda
AGENDA Executive Summary 1st Half 2013 Financial Results Integration Updates Summary
Slide 6: Financial Results
Financial Results Q-o-Q Y-o-Y Q2 Q1 H1 H1 Change Change RM mil 2013 2013 2013 2012 % % For the First Half of 2013: Net Interest Income 802 779 3 1,581 1,441 10 ♦ Net interest income increased by 10% on the back of 13% loans growth Other Operating Income 486 450 8 936 653 43 ♦ Non-interest income up
Slide 7: Profit Contribution by Entity
Profit Contribution by Entity PBT by Entity (RM mil) % Contribution by Entity RHB Bank RHB Islamic 2% 3% 4% 9% -21% -0.4% 1,124 94 94 889 94% H1 2012 H1 2013 H1 2012 H1 2013 88% RHB Investment RHB Insurance Bank Group +6% +104% H1 2012 H1 2013 RHB Insurance 99 30 32 49 RHB Investment Bank Group H1 2
Slide 8: Total Income by Business Segment
Total Income by Business Segment Improvement seen across all business segment RM mil Composition H1 2012 2,318 H1 2013 Global Financial 11% (5%) ▲>100% 193 322 Banking 22% (18%) 7% (7%) CIB ▲43% 189 628 10% (12%) Islamic Banking ▲16% 28 203 12% (14%) Retail ▲3% 27 1,080 38% (44%) Treasury ▲3% 9 294
Slide 9: PBT by Business Segment
PBT by Business Segment CIB & Business Banking impacted by higher loan loss impairment and slower capital market activities RM mil Composition H1 2012 1,184 H1 2013 6% 12% Global 6% Financial ▲>100% 36 66 (2%) (27%) Banking (4%) Islamic Banking ▲47% 24 76 22% (18%) Retail ▲5% 24 488 42% (35%) Treasu
Slide 10: Income Mix
Income Mix Higher non-interest income ratio reflecting good results of OSKIB acquisition 29% 28% 24% 28% 29% 33% 33% 34% 33% 9% 11% 10% 10% 11% 10% 10% 10% 10% 61% 63% 65% 62% 60% 57% 57% 57% 56% Q112 Q212 Q312 Q412 Q113 Q213 H112 H212 H113 Net Interest Income Islamic Banking Income Other Operating
Slide 11: Other Operating Income
Other Operating Income Gaining strong traction RM mil Composition H1 2012 653 H1 2013 4% Net Brokerage ▲>100% 155 196 5% (5%) (5%) Fund Management & UT Fee ▲>100% 87 98 15% (20%) Corporate Advisory, Underwriting & ▲>100% 35 54 Arrangement Fees Service Charges, Commission, Guarantee & Commitment Fees
Slide 12: Other Operating Expenses
Other Operating Expenses Composition RM mil 1% H1 11% H1 2012 1,050 2013 (11%) 11% Personnel (8%) ▼32% 204 841 Cost 57% Establishment ▼34% 74 291 20% (61%) Cost (20%) Marketing Expenses ▼87% 74 157 Personnel Cost Establishment Cost Note: Composition represents position for Admin & 49 Marketing Expen
Slide 13: Allowances for Loan Impairment
Allowances for Loan Impairment RM mil Increase/(Decrease) in Allowances for Loan Impairment -2 ▼ >100% -84 5 61 299 69 82 H1 2012 Written IA CA Recovered Others H1 2013 Off Asset Quality Quarterly Allowances for Loan Impairment & RM mil Credit Charge Ratio 430 0 3.59% 0.0 4 RM mil 2.99% 2.95% 3.15%
Slide 14: Financial Position
Financial Position Change Y-o-Y ♦ Total Assets: for H1 June Dec June Change 2013 RM mil 2013 2012 2012 % • For the first 6 months of the year, total assets % decreased by RM3.2 bil due mainly to lower cash and short term funds, partially offset by expansion in Total Assets 185,918 189,078 158,509 -2
Slide 15: Loans, Advances and Financing
Loans, Advances and Financing Change Y-o-Y June Dec June for H1 Change RM mil 2013 2012 2012 2013 Gross Loans (RM bil) & Growth (%) % % 25% 22% 300 16% 20% 11% 14% Working Capital 27,453 26,520 23,012 4 19 15% 13% 20% 13% 13% 250 11% 10% 16% 10% 13% 14% 12% 200 Purchase of Residential 10% 5% 10% 9%
Slide 16: 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% 8% 7% Fixed Rate 5% 11% 29% 11% 10% 9% Variable Rate 34% 28% 71% 27% 26% 30% 29% 17% 16% 13% 12% 10% 10% Domestic Market Share 9.6 0% 9.5% 9.5% 9.4 0% 9.3% 43% 44% 45% 43%
Slide 17: Loans, Advances and Financing by SBG
Loans, Advances and Financing by SBG RM mil ▲3% ▼2% ▲19% 35.3 36.5 June Dec 2012 111,474 2013 Retail 5.0 5.9 Retail ▲5% 2,037 44,140 1.8 1.8 Retail excluding Credit Card Easy Credit Card & Islamic ▲10% 1,655 17,921 Easy Banking Dec 2012 June 2013 CIB ▲ 3% 1,108 36,216 Composition Business 6% ▲4% 499
Slide 18: Customer Deposits & Funding
Customer Deposits & Funding Change Funding Composition Y-o-Y June Dec June for H1 RM mil Change 2013 2012 2012 2013 % % 1% 1% 1% 1% 1% 3% 3% 2% 3% 3% Fixed Deposits 105,845 108,697 89,232 -3 19 11% 11% 11% 11% 12% Demand 23,023 22,504 21,906 2 5 Deposits 7% 7% 8% 8% 7% Saving 7,390 6,933 6,762 7 9 D
Slide 19: Customer Deposits Profile & Market Share
Customer Deposits Profile & Market Share RM bil Customer Deposits RM bil FD & NID Maturity Structure 108.8 105.9 250 23% 95.8 1.0 0.6 15% 19% 88.1 89.3 89.5 15% 0.6 18.2 17.0 15% 12% 20% 12% 23% 1.5 0.5 0.5 12.3 200 19% 15% 12.3 11% 10% 14.8 15.8 150 14% 8% 8% -2% 9% 7% 0% 100 -4% 82.9 89.6 88.3 -10
Slide 20: Asset Quality
Asset Quality Gross Impaired Loans Ratio (%) by Purpose Gross Impaired Loans Ratio (%) Working Capital Purchase of Residential 4.59 Property 3.59 3.59 3.36 3.33 6.1 5.5 5.3 3.12 3.15 3.9 4.4 4.0 2.99 2.95 2.68 2011 2012 June 2013 2011 2012 June 2013 2.54 2.23 2.13 2.03 1.99 1.96 Purchase of Non- Per
Slide 21: Capital Position
Capital Position Times RHB Capital N1 0.8 152% 149% 0.7 0.63 136% 133% 0.6 0.54 130 % 0.5 0.4 0.39 0.38 0.3 0.2 80% Dec 2010 Dec 2011 Dec 2012 June 2013 Gearing Double Leverage RM bil RHB Islamic Bank RM bil RHB Investment Bank 5.0 14.7% 14.1% 15% 1.9 22.7% 25.3% 50% 45% 40% 4.5 35% 30% 25% 20% 1.7
Slide 22: Capital Position - RHB Bank Group and RHB Bank
Capital Position - RHB Bank Group and RHB Bank RHB Bank Group: Capital Development in H1 2013 ▲0.5% ▼0.5% 15.3% ▼0.9% 14.4% 10.8% 10.6% 8.0% 10.2% 10.1% 4.5% 3.5% Dec 2012 Increase Effect of transitional Increase in June 2013 2013 requirement in CET1 arrangement business volume CET 1 Tier 1 Total Ca
Slide 23: Return to Shareholders
Return to Shareholders Market Capitalisation Dividend Per Share 8.72 8.63 10 7.48 7.69 8 5.85 5.30 21.5 6 18.8 19.2 17.41% 3.90 21.38% 16.5 10.6% 17.45% 16.09% 4 12.6 11.4 8.6% 8.4 2 5.0% 9.0% 5.0% 5.0% 8.0% 6.0% 6.0% 0.0 0 2007 2008 2009 2010 2011 2012 June 2007 2008 2009 2010 2011 2012 June 2013 2
Slide 24: Agenda
AGENDA Executive Summary 1st Half 2013 Financial Results Integration Updates Summary
Slide 25: Update on Integration
Update on Integration Recap: Estimated Synergies Over 3 Years ♦ Legal Day 1 completed on 13 April 2013 RM mil 350 324 ♦ Single Platform Day 1 activities on track 15 and expected to be completed by year 300 34 end 250 200 149 ♦ Synergies: 112 150 5 63 5 17 275 • RM69 mil realised post-completion, 100
Slide 26: Agenda
AGENDA Executive Summary 1st Half 2013 Financial Results Integration Updates Summary
Slide 27: Summary
Summary 1 H1 2013 performance fall short of targets, impacted by higher loan loss impairment Our business has remained resilient and we remained focused in executing our 2 stated strategy to deliver long term growth for our shareholders Cost efficiency management and disciplined credit and risk mana
Slide 28: END
END www.rhbgroup.com INVESTOR RELATIONS CONTACT: Ms Yap Choi Foong Group Chief Financial Officer +(603) 9280 2463 cfyap@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, fi
Slide 29: Appendix
Appendix Key Business Highlights
Slide 30: Retail Business Performance
Retail Business Performance Mortgage Personal Use 8.5% 7.4% 7.7% 7.4% 7.8% 7.1% 7.3% 7.0% 6.9% 6.6% 6.7% 5.7% 6.3 5.8 20.6 22.2 23.3 5.0 14.1 16.0 18.8 2.6 2.7 3.5 2008 2009 2010 2011 2012 June 2013 2008 2009 2010 2011 2012 June 2013 Mortgage Loans (RM bil) Market Share Personal Use (RM bil) Market
Slide 31: Easy by RHB
Easy by RHB Number of Outlets Asset Composition 268 236 245 25 25 25 70 50 50 P.Loan 111 42 42 44 27% 7 19 ASB 32 128 128 129 73% 14 53 2 July 2009 Dec 2009 Dec 2010 June 2012 Dec 2012 June 2013 Easy Standalone Tesco POS LRT Financial Performance Gross Loans 9.6% RM bil 160.0% 155.0% 150.0% 6.6% 145
Slide 32: CIB Market Share
CIB Market Share YTD June 2013** FY 2012** FY 2011 Market Market Market Ranking Ranking Ranking Share Share Share Debt Capital Market * 22.1% #1 14.9% #4 9.7% #4 Mergers & Acquisitions 28.4% #2 7.1% #11 16.3% #3 Equities Capital Market ^ 2.5% #10 2.6% #11 6.8% #4 ** Combined RHBIB and OSKIB market d
Slide 33: Equities, Futures & Asset Management
Equities, Futures & Asset Management AUM - Malaysia YTD June 2013 FY 2012 RM bil 10.0% 10.1% Market Market Equities Ranking Ranking 32.8 Share Share 30.4 Malaysia 1.7% 2.6% - By value 9.0% #3 11.6% #2 14.9 17.4 - By volume 14.5% #1 16.2% #1 14.3 Singapore 8.3% #3 7.3% #4 12.3 Hong Kong 0.2% #75 0.1%
Slide 34: CIB - 2013 Awards
CIB - 2013 Awards RHB Investment Bank Berhad RHB Investment Management Sdn Bhd FUNDSUPERMART - THE RECOMMENDED ASSET ASIAN AWARDS 2013 UNIT TRUST AWARDS 2013/14 ♦ Best Highly Commended Corporate Sukuk ♦ Global Balanced Category Golden Agri-Resources RHB Global Multi Manager Fund RM1.5 bil Principal
Slide 35: Islamic Business Performance
Islamic Business Performance PBT Gross Loans RM mil 160 .0% RM bil 7.0% 155 .0% 6.5% 6.9% 150 .0% 145 .0% 140 .0% 215 135 .0% 130 .0% 5.6% 125 .0% 120 .0% 115 .0% 4.5% 110 .0% 105 .0% 165 100 .0% 95. 0% 90. 0% 85. 0% 80. 0% 75. 0% 115 70. 0% 211 209 65. 0% 17.9 60. 0% 55. 0% 16.3 13.1 50. 0% 45. 0%
Slide 36: RHB Bank Singapore Business Performance
RHB Bank Singapore Business Performance 50 PBT 160 .0% Loans, Deposits & Total Assets SGD mil 155 .0% 150 .0% 145 .0% SGD bil 45 140 .0% 4.8 135 .0% 130 .0% 125 .0% 40 120 .0% 115 .0% 110 .0% 4.4 105 .0% 35 100 .0% 3.5 95. 0% 90. 0% 30 85. 0% 80. 0% 3.4 25 75. 0% 70. 0% 65. 0% 2.7 2.9 2.8 60. 0% 55.
Slide 37: Business Banking and SME
Business Banking and SME 14 RM bil Gross Loans 160 .0% RM bil Customer Deposits 155 .0% 18 160 .0% 150 .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