Rhb Bank Bhd. · MYX:RHBBANK
Rhb Bank Bhd — 9M 2024 Earnings Presentation
33 slides from Rhb Bank Bhd's earnings presentation, Nov 29, 2024
Slide 1: RHB Bank Berhad Analysts Presentation 9M 2024 Financial Results
RHB BANK BERHAD Analysts Presentation 9M 2024 Financial Results Dato’ Mohd Rashid Mohamad Group Managing Director/Group Chief Executive Officer RHB Banking Group 29 November 2024
Slide 2: Executive Summary 9M 2024 Financial Results Summary
1. Executive Summary 2. 9M 2024 Financial Results 3. Summary
Slide 3: Executive Summary
Executive Summary
Slide 4: 9M 2024: Financial Highlights
4 9M 2024: Financial Highlights 4 N2 Total Income >RM6 bil NIM strengthened to 1.87% Net Profit RM2.3 bil Loans Growth 4.8% (annualised) +11.3% Y-o-Y 1.98% with liability management CIR 46.0%; ROE 9.8%N1 CASA Ratio 28.0% ▪ Total income increased 11.3% from RM5.7 bil (9M 2023) to RM6.4 bil (9M 2024)
Slide 5: TWP24 Strategy: Key Highlights
TWP24 Strategy: Key Highlights 5 5 9M 2024 +5.4% Retail Loans +6.6% Mortgage Loans +9.6% Auto Financing Achievements YTD Sep 2024 YTD Sep 2024 YTD Sep 2024 9.8% Be Everyone’s +9.3% Reflex Customers +29.1% Merchants Return on Equity (ROE) YTD Sep 2024 (to 181k) YTD Sep 2024 (to 98k) Primary Bank FY20
Slide 6: RHB Banking Group Scorecard for 9M 2024
RHB Banking Group Scorecard for 9M 2024 6 6 KPI Target FY2024 Actual 9M 2024 ROE ≥10.0% 9.8%N1 x Loans Growth (annualised) ≥4.5% 4.8%N2 √ CASA Composition ≥28.0% 28.0% √ Gross Impaired Loans Ratio ≤1.75% 1.75%N3 √ Cost-to-Income Ratio ≤47.5% 46.0% √ N1 ROE for 9M 2024 of 9.8% = excluding final divid
Slide 7: 9M 2024 Financial Results
9M 2024 Financial Results
Slide 8: Record quarterly net profit of RM833 mil
Record quarterly net profit of RM833 mil; 8 Y-o-Y growth driven by total income; improvement in NIM and narrowed CIR 1.1% 3.9% 11.3% Q-o-Q Y-o-Y 5,746 6,394 Total Income 2,088 2,112 2,194 4,107 4,321 NII NOII 1,386 703 1,442 670 1,494 700 1,640 2,073 • Total Income grew +3.9% • Total Income grew +11
Slide 9: Assets continue to grow whilst asset quality improved
Assets continue to grow whilst asset quality improved 9 Financial Position Asset Quality Total Gross Securities Stage 2 Loans Group GIL Domestic GIL Assets Loans N1 Portfolio Ratio 2.8% 3.6% 10.2% 0.27% 3.7% 5.0% 332 338 222 228 230 80 84 88 5.18% 4.99% 4.0 4.0 3.0 3.0 329 (3) 4.91% 3.9 2.9 228 Dec
Slide 10: Best quarter on sustained income growth, disciplined cost management and lower ECL
Best quarter on sustained income growth, disciplined cost management and lower ECL 1010 Q3 Q2 Q3 9M 9M RM mil Q-o-Q Y-o-Y Y-o-Y 2023 2024 2024 2023 2024 Net Fund Based Income 1,387.7 1,442.0 1,493.7 3.6% 7.6% 4,106.9 4,321.2 5.2% Non-Fund Based Income 571.5 670.0 700.4 4.5% 22.5% 1,639.5 2,073.1 26.
Slide 11: NIM strengthened 5 bps YTD to 1.87%; FX swap uplifted NIM by 11 bps
NIM strengthened 5 bps YTD to 1.87%; FX swap uplifted NIM by 11 bps to 1.98% benefitting from 1111 liability management initiative Y-o-Y: +4.6% Y-o-Y: +6.8% RM bil Y-o-Y: -2.7% Y-o-Y: -7.8% Y-o-Y: +7.6% Y-o-Y: +5.2% Q-o-Q: +3.6% 10.54 11.26 Fund Based Income 3.64 3.75 3.81 6.44 6.94 Fund Based Expen
Slide 12: Non-fund based income growth driven by higher fee income, net forex gain
Non-fund based income growth driven by higher fee income, net forex gain, and net trading and 12 investment income Y-o-Y: +22.5% Y-o-Y: +26.4% RM mil Q-o-Q: +4.5% 2,073.1 1,639.5 55.0 N1 670.0 700.4 Others 571.5 27.0 39.0 N1 9.0 Treasury Income 12.5 1,115.2 832.3 Net Insurance 336.7 378.5 34.5 281.3
Slide 13: Opex contained Q-o-Q; CIR improved to 46.0% YTD
Opex contained Q-o-Q; CIR improved to 46.0% YTD 1313 Q3 Q2 Q3 9M 9M RM mil Q-o-Q Y-o-Y Y-o-Y 2023 2024 2024 2023 2024 Personnel Expenses 564.0 598.9 586.2 -2.1% 3.9% 1,648.4 1,762.4 6.9% Establishment Expenses 208.4 239.8 248.5 3.6% 19.2% 642.4 725.2 12.9% of which: IT Expenses 60.8 85.8 93.1 8.5% 5
Slide 14: Normalised for forex impact, loans continue to grow Q-o-Q
Normalised for forex impact on translation of RM3 bil, loans continue to grow Q-o-Q; 1414 YTD loans growth led mainly by Group Community Banking and Commercial Sep Dec Jun Sep RM bil Q-o-Q YTD Y-o-Y 2023 2023 2024 2024 GROUP COMMUNITY BANKING 138.5 140.8 144.8 147.4 1.8% 4.7% 6.4% Retail 111.1 113.3
Slide 15: Optimise FD to rebalance deposits portfolio
Optimise FD to rebalance deposits portfolio 1515 Customer Deposits CASA by Segment RM bil Y-o-Y: +0.9% +2.3% Sep Dec Jun Sep RM bil Q-o-Q YTD Y-o-Y YTD: -2.8% -1.1% 2023 2023 2024 2024 Q-o-Q: -0.8% +0.5% GROUP COMMUNITY BANKING 39.1 39.9 40.9 40.7 -0.4% 2.1% 4.1% Retail 21.1 20.9 22.1 21.7 -1.9% 3.6
Slide 16: GIL moderated to 1.75% with LLC remained healthy at 106.4%
N1 GIL moderated to 1.75% with LLC (incl. Regulatory Reserves) remained healthy at 106.4% 16 6000 Gross Impaired Loans 2.20% 5500 2.10% 5.20% 5.18% 4.92% 4.99% 4.91% 5000 2.00% 4500 600000.00% 2.40% 1.83% 1.90% 550000.00% 4000 1.79% 1.76% 1.77% 2.20% 500000.00% 1.74% N1 1.80% 3500 2.00% 1.75% Gross
Slide 17: Focus areas: SME improving; recovery and R&R efforts in Thailand
Focus areas: SME improving; Continue to focus on recovery and R&R efforts in Thailand 17 Group Community Banking Mortgage Unsecured Auto Finance SME 3.98% 3.95% 3.94% 3.69% 7.61% 7.73% 7.98% 7.41% 5.46% 5.70% 5.70% 5.46% 12.66% 11.96% 12.65% 12.81% 1.40% 0.98% 1.01% 1.20% 100 3.43% 3.37% 3.29% 1150
Slide 18: Y-o-Y revenue expanded; pre-tax profit grew across all segments
Y-o-Y revenue expanded; Excluding prior year’s management overlay writeback, pre-tax profit 18 grew across all segments 18 Group Community Banking (GCB) Group Wholesale Banking (GWB) Group International Business (GIB) 9M 2023: RM3,108 mil 9M 2023: RM1,963 mil 9M 2023: RM734 mil 9M 2024: RM3,181 mil
Slide 19: Capital position remained robust for the Group and key banking subsidiaries
Capital position remained robust for the Group and key banking subsidiaries 19 19 RHB Bank Group RHB Bank 20. 0% 20. 0% 19. 0% 18. 0% 19.4% 19.3% 18.2% 18.6% 18. 0% 17. 0% 16. 0% 16. 0% 16.7% 16.6% 16.7% 16.6% 15. 0% 15.2% 15.6% 15.2% 15.6% 14. 0% 14. 0% 13. 0% 12. 0% 12. 0% 11. 0% 10. 0% 10. 0% 9.0
Slide 20: Summary
Summary
Slide 21: Concluding Remarks
Concluding Remarks 21 21 ▪ Key Financial Indicators Q-o-Q Positive momentum continues in Q3 2024 with earnings growth of 15.4% from RM722 mil (Q2 2024) to RM833 mil (Q3 2024) driven by: i. Total income growth of 3.9% from RM2.1 bil (Q2 2024) to RM2.2 bil (Q3 2024) ii. Opex moderating with a marginal
Slide 22: 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 23: Appendix
Appendix
Slide 24: Key Financial Data
Key Financial Data 24 24 Financial Data FY2020 FY2021 FY2022 FY2023 9M 2024 RM mil Income Statement Total Income 7,186 7,789 8,160 7,770 6,394 Operating Profit Before Allowances 3,799 4,266 4,554 4,081 3,451 Profit Before Tax 2,644 3,529 4,133 3,753 2,973 Net Profit 2,033 2,618 2,678 2,806 2,286 Bal
Slide 25: Key Financial Ratios
Key Financial Ratios 25 25 Financial Ratios FY2020 FY2021 FY2022 FY2023 9M 2024 Profitability Return on Equity 7.7% 9.6% 9.6% 9.5% 9.8% Net Interest Margin 2.13% 2.20% 2.24% 1.82% 1.87% Cost to Income Ratio 47.1% 45.2% 44.2% 47.5% 46.0% Asset Quality Gross Impaired Loan Ratio 1.71% 1.49% 1.55% 1.74%
Slide 26: Segmental Performance
Segmental Performance 26 Group Community Banking Group Wholesale Banking 9M 2023: RM2,747 mil 9M 2023: RM898 mil 2.5% 28.1% 9M 2024: RM2,816 mil 9M 2024: RM1,150 mil 1.0% Net Fund Based 1,867 5.7% 37.0% 14.3% 0.5% 1,848 Income 898 949 749 595 592 547 351 401 Retail SME CBIB Treasury International Gr
Slide 27: Retail Banking
Retail Banking 27 27 RM bil Gross Loans RM bil Customer Deposits Y-o-Y: +7.5% Y-o-Y: +8.0% 120 .0 78.7 85.1 100 .0 11.9 11.7 80.0 9.3 10.0 60.0 111.1 119.5 63.4 40.0 57.6 20.0 - Sep 2023 Sep 2024 Sep 2023 Sep 2024 Fixed Deposits Demand Deposits Savings Deposits Retail Market Share * Asset Quality RM
Slide 28: SME
SME 28 28 Gross Loans Customer Deposits RM bil RM bil Y-o-Y: +7.6% Y-o-Y: +2.0% 36.0 35.0 30.0 33.5 25.0 20.0 17.9 19.0 27.4 27.9 15.0 15.5 17.0 10.0 5.0 - Sep 2023 Sep 2024 Sep 2023 Sep 2024 Fixed Deposits Demand Deposits SME Market Share * RM bil Asset Quality 3.40% 3.20% 3.43% 3.37% 3.29% 9.3% 9.
Slide 29: Asset Under Management and Market Positions
Asset Under Management and Market Positions 29 29 Asset Under Management Investment Banking League Table RM bil YTD Sep 2024 Market Share Ranking Y-o-Y : +13.0% Equities Broking: 56.4 - By value 7.3% 6th 49.9 - By volume 8.1% 4th 9.0 Overseas 8.4 Debt Capital Markets: 9.9 13.3 Wholesale - MYR sukuk
Slide 30: Investment Banking – Notable Deals
Investment Banking – Notable Deals 30 30 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 31: Islamic Banking
Islamic Banking 31 31 PBT Gross Financing RM mil RM bil Y-o-Y: -4.8% Y-o-Y: +4.0% 100 .0 90.0 80.0 70.0 60.0 87.2 50.0 40.0 30.0 83.9 812.4 773.6 20.0 10.0 - Sep 2023 Sep 2024 9M 2023 9M 2024 Market 9.7% 9.3% Share Gross Financing/ Asset Quality Total Gross Financing (Domestic) RM bil 1.41% 1.45% 1.
Slide 32: RHB Bank Singapore
RHB Bank Singapore 32 32 SGD mil PBT Loans, Deposits & Total Assets SGD bil 120 .0 100 .0 Y-o-Y: +>100% 80.0 60.0 13.9 11.8 9.9 40.0 84.2 8.2 8.3 7.8 20.0 38.4 - Sep 2023 Sep 2023 Sep 2024 9M 2023 9M 2024 Sep 2024 Gross Loans Deposits Total Assets Gross Impaired Loans Ratio Credit Charge Ratio 1.10%
Slide 33: Overseas Loans
Overseas Loans 33 33 Sep Dec Jun Sep RM bil Q-o-Q YTD Y-o-Y 2023 2023 2024 2024 N1 Overseas Operations 32.9 32.8 35.3 31.5 -10.8% -3.8% -4.3% Singapore 27.0 27.1 29.9 26.7 -10.8% -1.6% -1.0% Others* 6.0 5.6 5.4 4.8 -10.8% -14.3% -19.1% of which: Cambodia 3.7 3.5 3.5 3.0 -12.7% -13.2% -16.7% Thailand