Rhb Bank Bhd. · MYX:RHBBANK
Rhb Bank Bhd — Shareholder Meeting (April 2018)
22 slides from Rhb Bank Bhd's shareholder meeting presentation, Apr 25, 2018
Slide 1: RHB Bank Berhad 52nd Annual General Meeting
RHB® RHB BANK BERHAD 52™ ANNUAL GENERAL <a MEETING — 25 April 2018
Slide 2: Presentation to Shareholders
RHB BANK BERHAD 52nd ANNUAL GENERAL MEETING Khairussaleh Ramli Group Managing Director Presentation to Shareholders 25th April 2018 Page | 2
Slide 3: Overview
Overview FY2017 Performance Review Strategy Update 2018 Outlook
Slide 4: Highlights
Highlights Delivered 16.0% growth in net profit for FY2017 or RM 1.95 billion on the back of higher net fund based income and lower loan loss impairment and impairment losses on other assets, while successfully reining in operating expenses Pleased to reward shareholders with 15 sen dividend per
Slide 5: FY2017 Performance Review
Overview FY2017 Performance Review Strategy Update 2018 Outlook
Slide 6: We delivered 16.0% growth in net profit for FY2017
We delivered 16.0% growth in net profit for FY2017 from higher net fund based income and lower loan loss impairment and impairment losses on other assets, while closely managing overheads Total Fund Based Non-Fund Based Income Income Income +3.2% +5.4% -1.9% 2017: RM6.4 bil 2017: RM4.5bil 2017: RM1.
Slide 7: Active management of funding and liquidity resulted in solid net fund based income growth
Active management of funding and liquidity resulted in solid Y-o-Y net fund based income growth and stable net interest margin (NIM) Y-o-Y: +5% 9.89 10.04 RM’ bil 5.57 5.49 4.32 4.55 2016 2017 Fund Based Income Fund Based Expenses Net Fund Based Income NIM 2.18% 2.18% Page | 7
Slide 8: Wealth management fee income and brokerage income increased Y-o-Y
Wealth management fee income and brokerage income increased Y-o-Y, offset primarily by lower investment banking related fee income Non Fund Based Income Y-o-Y RM’mil 2016 2017 Change Total Fee Income (A) 1,139 1,133 - Fee Income – Wealth 124 147 19% 30% 29% Management Fee Income - Commercial 547 532
Slide 9: Operating expenses tightly managed
Operating expenses tightly managed; grew 2.9% from higher personnel cost and IT-related expenses in line with the Group’s investments in IT and Digital Capabilities; CIR contained at <50% Y-o-Y: +3% RM’ mil 3,095 3,187 Administration & 359 +3% 371 General Expenses 238 +5% 250 -4% Marketing 699 727 E
Slide 10: Loans grew 3.7% year-on-year
Loans grew 3.7% year-on-year, though Malaysia grew higher at 5.2% mainly from mortgage and SME. Portfolio re-composition strategy progressing well Loans, Advances and Composition Financing % (RM’bil) 2016 2017 Change 2014 2017 Retail Banking 70.1 76.3 +8.7% 45.1% 47.6% of Which: Mortgage 40.5 46.9 +
Slide 11: CASA grew 18.8%, boosting CASA composition
CASA grew 18.8%, boosting CASA composition from 25.6% to 30.4%. Overall deposits grew only 0.3% as we consciously released more expensive corporate deposits while ensuring strong overall liquidity Deposits by Type 2016 2017 % Change (RM’bil) Fixed DepositsN1 123.1 115.7 -6% CASA 42.5 50.5 +19% Deman
Slide 12: Asset quality improved from more active account management
Asset quality improved from more active account management, credit charge ratio normalised and loan loss coverage boosted to >100% RHB Capital RHB Bank 150 .0% 101.6% 83.3% 74.7% 100 .0% 63.7% 61.1% 5.0 0 2.81% 50. 0% 2.03% 1.88% 2.43% 2.23% 4.5 0 0.37% 0.14% 0.31% 0.39% 0.27% 0.0 % 4.0 0 -50.0% 3.5
Slide 13: The Board has proposed a final cash dividend of 10 sen per share
The Board has proposed a final cash dividend of 10 sen per share, for a total dividend of 15 sen per share translating into 31% payout Dividend Per Share (sen) RHB Capital RHB Bank 10.30 10.00 7.00 12.00 6.00 6.00 5.00 5.00 2013 2014 2015 2016 2017 Interim Final Dividend Payout Ratio & DRP Rate RHB
Slide 14: Capital position at both Group and entity levels is strong
Capital position at both Group and entity levels is strong RHB Bank Group RHB Bank 20. 0% 20. 0% 15% 18. 0% 18. 0% 16. 0% 16. 0% 11% 14. 0% 14. 0% 12. 0% 12. 0% 7% 10. 0% 10. 0% 15.9% 14.7% 13.1% 13.4% 8.0 % 13.9% 14.2% 17.2% 8.0 % 12.3% 12.7% 13.1% 13.4% 17.2% 3% 6.0 % 6.0 % 4.0 % 4.0 % -1% 2.0 % 2
Slide 15: Strategy Update
Overview FY2017 Performance Review Strategy update 2018 Outlook
Slide 16: Through IGNITE 2017 we achieved healthy business performance
Through IGNITE 2017 we achieved healthy business performance, capital optimization, cost management, progress in Digital and improvement in employee engagement SME loan market share grew from Capital Optimisation resulted in 7.2% in 2014 to 9.0% in 2017 RM43.9 bil RWA reduction over 3 years Asset Mg
Slide 17: Our performance received accolades and recognition from external parties
Our performance received accolades and recognition from external parties INVESTMENT BANKING RETAIL AND BUSINESS BANKING THE ASSET TRIPLE A ISLAMIC FINANCE AWARDS - 2017 ♦ Most Innovative Deal of the Year • Sarawak Hidro RM5.54 billion Sukuk Murabaha ♦ Best Project Finance Deal • Lebuhraya Duke Fasa
Slide 18: FIT22: Our Roadmap to Win
FIT22: OUR ROADMAP TO WIN 22 initiatives to deliver our 2022 aspirations, anchored on priorities to: Fund our Journey, Invest to Win in the medium term and Transform the Organisation for sustainability Our priorities will be to strengthen Malaysia and win in targeted segments; focus on our niche ove
Slide 19: 2018 Outlook
Overview FY2017 Performance Review Strategy update 2018 Outlook
Slide 20: 2018 Economic Outlook
2018 Economic Outlook Malaysia’s GDP to grow 5.2% in 2018 compared with 5.9% in 2017: 1 • Slower export growth from higher base after a surge in 2017 • Resilient domestic demand, backed by strong consumer spending and private investments • Slowdown in public spending, in line with the Government’s
Slide 21: Concluding Remarks
Concluding Remarks 1 We delivered sustained profit growth momentum, and rewarded shareholders with good dividends Our strong capital, ample liquidity and adequate loan loss coverage have 2 strengthened our fundamentals to capture growth potential 3 With positive momentum across core businesses
Slide 22: www.rhbgroup.com
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 to be corre