Rhb Bank Bhd. · MYX:RHBBANK
Rhb Bank Bhd — H1 2024 Earnings Presentation
34 slides from Rhb Bank Bhd's earnings presentation, Aug 27, 2024
Slide 1: RHB Bank Berhad Analysts Presentation H1 2024 Financial Results
RHB BANK BERHAD Analysts Presentation H1 2024 Financial Results Mohd Rashid Mohamad Group Managing Director/Group Chief Executive Officer RHB Banking Group 27 August 2024
Slide 2: Agenda
1. Executive Summary 2. H1 2024 Financial Results 3. Summary
Slide 3: Executive Summary
Executive Summary
Slide 4: H1 2024: Financial Highlights
4 H1 2024: Financial Highlights 4 Total Income >RM4 bil NIM strengthened to 1.86% Net Profit RM1.5 bil Loans Growth: 4.9% (annualised) Group CET1 16.5%; TCR 19.2% +10.9% Y-o-Y 1.97% with liability management CIR 46.3%; ROE 9.6% CASA Ratio: 28.1% Interim Dividend 15 sen (cash) ▪ Total income increase
Slide 5: Consistent interim dividend of 15 sen
Consistent interim dividend of 15 sen, and to provide robust returns to shareholders by year end 5 5 Dividend Per Share (sen) Group’s Capital Ratio 62.9% 63.2% 61.1% 45.0% 60.0% 34.8% 60.0% 40.0% 40.0% 45.1% 51.2% 45.0% 19.8% 19.3% 19.4% 19.2% 40.9% 20.0% 20.0% 18.4% 29.7% 0.0% 0.0% 40.00 40.00 40.0
Slide 6: TWP24 Strategy: Key Highlights
TWP24 Strategy: Key Highlights 6 6 H1 2024 Achievements +3.2% Retail Loans +4.2% Mortgage Loans +6.7% Auto Financing Be Everyone’s YTD June 2024 YTD June 2024 YTD June 2024 9.6% Return on Equity (ROE) Primary Bank FY2023: 9.5% | TWP24: 11.5% +5.1% Reflex Customers +16.2% Merchants YTD June 2024 (to
Slide 7: RHB Banking Group Scorecard for H1 2024
RHB Banking Group Scorecard for H1 2024 7 7 KPI Target FY2024 Actual H1 2024 ROE ≥10.0% 9.6% x Loans Growth (annualised) ≥4.5% 4.9% √ CASA Composition ≥28.0% 28.1% √ Gross Impaired Loans Ratio ≤1.75% 1.76% x Cost-to-Income Ratio ≤47.5% 46.3% √
Slide 8: H1 2024 Financial Results
H1 2024 Financial Results
Slide 9: Total income supported by enhanced NIM, fee income improvements and assets growth
Total income supported by enhanced NIM, fee income improvements and assets growth 99 Financial Results Profitability Ratios Total Operating Profit Profit Before Tax Net Profit Return on Cost-to-Income Non-Fund Based/ Income Before Allowances N1 N1 Equity Ratio Total Income +5.6% +7.2% +10.9% +13.4%
Slide 10: Operating profit supported by enhanced NIM & fee income
Operating profit supported by enhanced NIM & fee income, with contained cost management 1010 Q2 Q1 Q2 H1 H1 RM’ mil Q-o-Q Y-o-Y Y-o-Y 2023 2024 2024 2023 2024 Net Fund Based Income 1,345.5 1,385.5 1,442.0 4.1% 7.2% 2,719.2 2,827.5 4.0% Non-Fund Based Income 534.0 702.7 670.0 -4.7% 25.5% 1,068.0 1,37
Slide 11: NIM strengthened 6 bps Q-o-Q to 1.89%
NIM strengthened 6 bps Q-o-Q to 1.89%; NIM including FX swap improved to 1.99% benefitting 1111 from liability management initiative Y-o-Y: +6.7% Y-o-Y: +8.0% RM’bil Y-o-Y: -6.4% Y-o-Y: -10.6% Y-o-Y: +7.2% Y-o-Y: +4.0% Q-o-Q: +4.1% 7.45 6.90 Fund Based Income 3.51 3.70 3.75 4.18 4.62 Fund Based Expe
Slide 12: Non-fund based income growth driven by higher fee income
Non-fund based income growth driven by higher fee income, net forex gain, net trading and N1 12 investment income and one-off gain on disposal of RHBSVN Y-o-Y: +25.5% Y-o-Y: +28.5% RM’mil Q-o-Q: -4.7% 1,372.7 N1 1,068.0 46.0 Others 702.7 670.0 14.4 534.0 7.0 39.0 N1 736.7 Treasury Income 9.3 551.0 N
Slide 13: CIR improved to 46.3% YTD; against 47.5% in FY2023
CIR improved to 46.3% YTD; against 47.5% in FY2023 1313 Q2 Q1 Q2 H1 H1 RM’ mil Q-o-Q Y-o-Y Y-o-Y 2023 2024 2024 2023 2024 Personnel Expenses 578.7 577.3 598.9 3.8% 3.5% 1,084.4 1,176.2 8.5% Establishment Expenses 219.6 236.8 239.8 1.3% 9.2% 434.0 476.7 9.8% of which: IT Expenses 76.0 83.7 85.8 2.5%
Slide 14: YTD loans growth led mainly by Group Community Banking
YTD loans growth led mainly by Group Community Banking (especially mortgage and auto 1414 finance), Singapore and Commercial Jun Dec Mar Jun RM’bil Q-o-Q YTD Y-o-Y 2023 2023 2024 2024 GROUP COMMUNITY BANKING 136.1 140.8 142.5 144.8 1.6% 2.8% 6.4% Retail 109.1 113.3 114.9 117.0 1.9% 3.2% 7.2% Mortgag
Slide 15: Rebalancing of deposits portfolio; steady CASA growth
Rebalancing of deposits portfolio for further COF optimisation; steady CASA growth 1515 Customer Deposits CASA by Segment RM’bil Y-o-Y: +4.8% Jun Dec Mar Jun YTD: -1.9% RM’bil Q-o-Q YTD Y-o-Y 2023 2023 2024 2024 Q-o-Q: -1.1% GROUP COMMUNITY BANKING 39.0 39.9 40.9 40.9 - 2.5% 4.8% 245.1 242.9 240.3 R
Slide 16: H1 2024 credit cost at 24 bps; ECL narrowing
H1 2024 credit cost at 24 bps however ECL narrowing Q-o-Q from RM213 mil to RM147 mil 16 Allowances for Losses on Loans 800 1,00 0 RM’mil 1.0 0% 700 800 0.30% 0.42% 600 0.5 0% 0.40% N1 500 -30.8% 0.24% 0.16% 600 0.0 0% 0.19% 0.10% 400 400 -0.19% 300 -0.04% 237 -0.50% 213 147 361 166 200 200 55 -1.00
Slide 17: GIL ratio improved to 1.76%, LLC healthy at 106.8%
GIL ratio improved to 1.76% with LLC (incl. Regulatory Reserves) remained healthy at 106.8% 17 6000 Gross Impaired Loans 2.20% 5500 2.10% 5.55% 5.20% 5.18% 4.92% 4.99% 5000 2.00% 4500 1.83% 600000.00% 2.80% 1.90% 4000 550000.00% 1.79% 2.60% 1.74% 1.76% 1.80% 500000.00% 3500 1.71% 2.40% 450000.00% 2.
Slide 18: Contained domestic GIL, overseas' GIL moderating
Contained domestic GIL, overseas’ GIL moderating 18 Group Community Banking Mortgage Unsecured Auto Finance SME 3.98% 3.95% 3.94% 7.61% 7.73% 7.98% 5.46% 5.70% 5.70% 12.66% 11.96% 12.65% 1.40% 0.98% 1.20% 100 3.43% 3.37% 1150 0.95% 0.95% 0.60% 0.50% 0.46% 1.00% 3.20% 1.00% 1.35% 1.30% 1.33% 90 3.00%
Slide 19: Y-o-Y revenue and pre-tax profit growth by business
Y-o-Y revenue and pre-tax profit growth observed for Wholesale Banking and International business. Lower pre-tax profit for Community Banking partly due to one off management overlay 1919 reversal last year Group Community Banking (GCB) Group Wholesale Banking (GWB) Group International Business (GIB
Slide 20: Capital position remained robust for the Group and key subsidiaries
Capital position remained robust for the Group and key banking subsidiaries 20 20 RHB Bank Group RHB Bank 20. 0% 20. 0% 19. 0% 18. 0% 19.4% 19.2% 18. 0% 18.2% 18.2% 17. 0% 16. 0% 16. 0% 16.7% 16.5% 16.7% 16.5% 15. 0% 14. 0% 15.2% 15.3% 15.2% 15.3% 14. 0% 13. 0% 12. 0% 12. 0% 11. 0% 10. 0% 10. 0% 9.0
Slide 21: Summary
Summary
Slide 22: Concluding Remarks
Concluding Remarks 22 22 ▪ H1 2024 performance supported by sustainable growth in revenue, improvement in NIM and containment of cost ▪ Maintained strong asset growth mainly in Retail and Commercial, whilst conservatively managing asset quality ▪ Continue to grow our securities portfolio ▪ Consisten
Slide 23: Thank You
THANK YOU www.rhbgroup.com INVESTOR RELATIONS CONTACT Email :investor.relations@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 nee
Slide 24: Appendix
Appendix
Slide 25: Key Financial Data
Key Financial Data 25 25 Financial Data FY2020 FY2021 FY2022 FY2023 H1 2024 RM’mil Income Statement Total Income 7,186 7,789 8,160 7,770 4,200 Operating Profit Before Allowances 3,799 4,266 4,554 4,081 2,254 Profit Before Tax 2,644 3,529 4,133 3,753 1,884 Net Profit 2,033 2,618 2,678 2,806 1,452 Bal
Slide 26: Key Financial Ratios
Key Financial Ratios 26 26 Financial Ratios FY2020 FY2021 FY2022 FY2023 H1 2024 Profitability Return on Equity 7.7% 9.6% 9.6% 9.5% 9.6% Net Interest Margin 2.13% 2.20% 2.24% 1.82% 1.86% Cost to Income Ratio 47.1% 45.2% 44.2% 47.5% 46.3% Asset Quality Gross Impaired Loan Ratio 1.71% 1.49% 1.55% 1.74%
Slide 27: Segmental Performance
Segmental Performance 27 Group Community Banking Group Wholesale Banking H1 2023: RM1,860.2 mil H1 2023: RM532.7 mil 0.2% 37.3% H1 2024: RM1,856.1 mil H1 2024: RM731.2 mil Net Fund 2.1% 3.6% 28.1% 55.4% 0.9% Based 1,255 1,230 Income 605 627 354 454 403 399 179 278 Retail SME CBIB Treasury Internatio
Slide 28: Retail Banking
Retail Banking 28 28 RM’bil Gross Loans RM’bil Customer Deposits Y-o-Y: +7.2% Y-o-Y: +7.0% 100 .0 78.8 84.4 12.1 11.8 10.3 80.0 9.4 60.0 109.1 117.0 62.3 40.0 57.4 20.0 - Jun 2023 Jun 2024 Jun 2023 Jun 2024 Fixed Deposits Demand Deposits Savings Deposits Retail Market Share * Asset Quality RM’bil 9.
Slide 29: SME
SME 29 29 Gross Loans Customer Deposits RM’bil RM’bil Y-o-Y: +7.5% Y-o-Y: +3.1% 35.9 30.0 25.0 33.5 20.0 17.5 18.7 27.0 27.8 15.0 10.0 5.0 15.9 17.2 - Jun 2023 Jun 2024 Jun 2023 Jun 2024 Fixed Deposits Demand Deposits SME Market Share * RM’bil Asset Quality 3.40% 3.20% 3.43% 3.37% 3.08% 9.3% 9.2% 9.
Slide 30: Asset Under Management and Market Positions
Asset Under Management and Market Positions 30 30 RM’bil Asset Under Management Market YTD Jun 2024 Ranking Share Y-o-Y : +13.6% Equities Broking: 56.1 - By value 7.5% 5th 49.4 - By volume 8.1% 4th 9.5 8.4 13.0 Debt Capital Markets: 9.3 - MYR sukuk 14.9% 3rd - Total MYR bonds (Conventional 13.0% 3rd
Slide 31: Investment Banking – Notable Deals
Investment Banking – Notable Deals 31 31 CF/ECM DCM M&A ESG Kumpulan Perangsang Selangor Berhad Johor Plantations Group Berhad USD57,463.6 mil RM735.0 mil IPO Malaysia Rail Link Sdn Bhd Divestment by Bold Approach Sdn Bhd, a wholly-owned Principal Adviser, Joint Global Coordinator, Issuance of RM1.5
Slide 32: Islamic Banking
Islamic Banking 32 32 PBT Gross Financing RM’mil RM’bil Y-o-Y: -14.2% Y-o-Y: +3.5% 90.0 80.0 70.0 60.0 50.0 40.0 30.0 82.4 85.3 548.4 470.5 20.0 10.0 - Jun 2023 Jun 2024 H1 2023 H1 2024 Market 9.8% 9.3% Share Gross Financing/ Asset Quality Total Gross Financing (Domestic) RM’bil 1.38% 1.45% 1.48% 1.
Slide 33: RHB Bank Singapore
RHB Bank Singapore 33 33 SGD’mil PBT Loans, Deposits & Total Assets SGD’bil Y-o-Y: +>100% 60.0 50.0 40.0 13.7 30.0 56.1 11.2 8.1 8.6 9.3 20.0 7.1 10.0 23.0 - Jun 2023 Jun 2023 Jun 2024 H1 2023 H1 2024 Jun 2024 Gross Loans Deposits Total Assets Gross Impaired Loans Ratio Credit Charge Ratio 1.10% 1.0
Slide 34: Overseas Loans
Overseas Loans 34 34 Jun Dec Mar Jun RM’bil Q-o-Q YTD Y-o-Y 2023 2023 2024 2024 Overseas Operations 30.5 32.8 34.2 35.3 3.4% 7.8% 15.6% Singapore 24.5 27.1 28.4 29.9 5.2% 10.2% 21.9% Others* 6.0 5.6 5.7 5.4 -5.5% -3.9% -10.0% of which: Cambodia 3.6 3.5 3.6 3.5 -2.3% -0.7% -4.3% Thailand 2.0 1.7 1.7