Rhb Bank Bhd. · MYX:RHBBANK
Rhb Bank Bhd — RHB Banking Group — H1 2014 Earnings Presentation
37 slides from Rhb Bank Bhd's earnings presentation, Aug 27, 2014
Slide 1: RHB Banking Group H1 2014 Financial Results
Mr. Kellee Kam Group Managing Director RHB Banking Group 27 August 2014
Slide 2: Executive Summary H1 2014 Financial Results Summary
Executive Summary H1 2014 Financial Results Summary
Slide 3: Executive Summary
Executive Summary 1st Half 2014 Results 1 Net profit at RM1.0 billion, up 31.2% year-on-year 2 Healthy revenue growth, up 4.1% to RM2.9 billion mainly attributed to strong growth in Islamic Banking income by 20.5% and higher net interest income by 4.3% 3 Gross loans up 8.8% for the first half of 201
Slide 4: Executive Summary: Capital Management Plan and Strategic Update
Executive Summary Capital Management Plan Completed 7th DRP in respect to 2013 final dividend: 1 ♦ A total of 25,546,821 new RHB Capital Shares was issued on 23 July 2014, representing 72.47% reinvestment rate ♦ Total capital reinvested by shareholders since 2010 amounting to RM1.25 billion RHB Bank
Slide 5: RHB Banking Group Scorecard 2014
RHB Banking Group Scorecard 2014 Top Level Indicators Target 2014 H1 2014 ROE >12.0% 11.7%N1 Loans Growth 12% 8.8%N2 CASA Growth >15% 8.6%N2 Gross Impaired <2.5% 2.45% Loans Ratio Cost to Income Ratio <50% 54.4% International Contribution >12% 11.0% N1 Annualised N2 Changes for H1 2014, not annualis
Slide 6: Executive Summary H1 2014 Financial Results Summary
Executive Summary H1 2014 Financial Results Summary
Slide 7: Financial Results
Financial Results Q-o-Q Y-o-Y For the First Half of 2014 : Q2 Q1 H1 H1 Change Change RM mil 2014 2014 2014 2013 ♦ Net interest income increased by 4% on the back of % % a 11.8% increase in conventional gross loans y-o-y Net Interest Income 828 822 1 1,650 1,581 4 ♦ Non-interest income lower by 1%, d
Slide 8: Net Interest Income & Islamic Banking Income
Net Interest Income & Islamic Banking Income Net Interest Income Higher net interest income due to RM mil 11.8% growth in conventional loans 133 Higher Islamic Banking income on 202 ▲ 4% the back of 19.8% increase year- on-year in financing base to 1,650 RM21.5 billion. 1,581 H1 2013 Interest In
Slide 9: Income Mix & NIM
Income Mix & NIM Income Mix 33% 34% 36% 37% 34% 30% 33% 32% 10% 10% 10% 10% 13% 10% 11% 10% 57% 56% 54% 53% 56% 57% 57% 57% Q113 Q213 Q313 Q413 Q114 Q214 H113 H114 Net Interest Income Islamic Banking Income Other Operating Income Net Interest Income & NIM 1,25 0 2.34% 2.33% 2.34% 2.33% 2.33% 2.4 0%
Slide 10: Other Operating Income
Other Operating Income RM mil Composition H1 2013 937 H1 2014 5% 8% (5%) Service Charges, Commission, Guarantee & Commitment Fees ▲27% 57 268 (5%) Corporate Advisory, Underwriting ▼14% -9 14% & Arrangement Fees 52 (14%) Net Brokerage ▼11% -21 6% 173 67% (13%) (63%) Fund Management & UT Fee ▼29% -29
Slide 11: Other Operating Expenses
Other Operating Expenses Composition RM mil 12% 10% 11% 9% H1 2013 1,467 H1 2014 20% 20% (10%) 57% (8%) 61% Personnel Cost ▲14% 118 959 H1 2013 H1 2014 Personnel Costs Establishment ▲10% 29 Cost 321 Establishment Costs Marketing Expenses Admin & Administration and General Expenses General ▼7% - 12 1
Slide 12: Allowances for Loan Impairment
Allowances for Loan Impairment Increase/(Decrease) in Allowances for Loan Impairment RM mil -201 299 ▼ 76% -49 -2 -19 43 71 H1 2013 IA Written Recovered CA Others H1 2014 Off Asset Quality Allowances for Loan Impairment & RM mil RM mil Credit Charge Ratio 2.99% 200 0.55% 0.49% 0.0 08 4,30 0 3.1 0% 1
Slide 13: Group Financial Position
Group Financial Position Change for Y-o-Y ♦ Total Assets: June Dec June 6M 2014 Change RM mil 2014 2013 2013 % % • For the first 6 months of the year, total assets expanded by 8% to RM205.5 bil Total Assets 205,523 191,090 185,918 8 11 mainly due to growth in net loans, financial assets/investments,
Slide 14: Loans, Advances and Financing
Loans, Advances and Financing 140,000 RM mil 135,000 1,385 453 105 2 -9 629 130,000 1,271 1,989 2,149 125,000 2,752 132,479 120,000 121,753 115,000 Dec 2013 Purchase of Purchase of Working Purchase of Merger and Purchase of Personal Use Purchase of Credit Card Others Jun 2014 Res. Property Securitie
Slide 15: Loans Profile and Market Share
Loans Profile and Market Share Gross Loans & Growth (%) Gross Loans by Interest/Profit RM bil Rate Sensitivity 22% 25% 16% 14% 300 20% 20% 16% 11% 13% 13% 250 15% 9% Fixed Rate 13% 11% 10% 14% 200 25% 5% 10% 8% 9% 150 0% -5% 100 132.5 Variable 121.8 -10% -15% 83.9 97.4 111.5 50 Rate -20% 0 75% 2010
Slide 16: Loans By Type of Customers
Loans By Type of Customers 140,000 Composition Loans by Type of Customers RM mil 135,000 710 1,355 10% 7% 7% 11% 11% 130,000 9% 9% 3,732 5% 6% 7% 125,000 4,929 27% 26% 29% 29% 30% 132,479 120,000 13% 12% 10% 10% 10% 121,753 115,000 110,000 Dec 2013 Individuals Corporate International SME Jun 2014 &
Slide 17: Customer Deposits
Customer Deposits RM mil FD CASA Dec 2013 137,741 Fixed Deposits 9,079 +9% +9% Jun 2014: RM114,673 mil Jun 2014: RM34,864 mil Demand 2,447 Dec 2013: RM105,594 mil Dec 2013: RM32,105 mil Deposits Saving 312 Deposits CA SA NIDs -8 +10% +4% Jun 2014 149,571 ▲9% Jun 2014: RM27,019 (23%) mil Jun 2014: RM
Slide 18: Customer Deposits Profile & Market Share
Customer Deposits Profile & Market Share RM bil Customer Deposits RM bil FD & NID Maturity Structure 23% 350 19% 109.5 12% 23% 20% 88.1 108.8 105.6 114.7 19% 300 8% 10% 0.6 0.7 11% 10% 1.0 0.4 250 14% 9% 18.2 12.2 15.8 -0.4% 1.5 20.7 7% 8% 6% 14.8 200 0% 150 -2% -10% 100 89.6 93.0 88.2 98.2 138.2 13
Slide 19: Funding & Leverage
Funding & Leverage Funding Composition CASA Composition RM bil 1% 1% 1% 1% 1% 3% 2% 3% 3% 2% 11% 11% 11% 12% 12% 60.0 29.5% 26.8% 8% 7% 8% 9% 10% 24.0% 50.0 23.3% 23.3% 24.5% 21.3% 40.0 19.5% 30.0 14.5% 77% 79% 77% 75% 75% 20.0 9.5% 34.9 32.1 27.8 29.4 25.4 10.0 4.5% 2010 2011 2012 2013 Jun 2014 - -
Slide 20: PBT by SBG
PBT by SBG RM mil Composition CIB BBG H1 2013 1,048 3% +219% +54% 14% (3%) CIB 439 (22%) H1 2014: RM640 mil H1 2014: RM236 mil H1 2013: RM201 mil H1 2013: RM153 mil 41% 15% (17%) BBG 83 (13%) GIB TSY GIB 14 27% +43% -13% (45%) TSY - 34 H1 2014: RM47 mil H1 2014: RM219 mil H1 2013: RM33 mil H1 2013:
Slide 21: Loans, Advances and Financing by SBG
Loans, Advances and Financing by SBG RM mil Retail CIB Composition Dec 2013 121,753 7% (7%) 13% +9% +9% (13%) Retail 4,716 45% (45 (45%) Jun 2014: RM59,947 mil Jun 2014: RM47,041 mil %) Dec 2013: RM55,231mil Dec 2013: RM43,004 mil 35% CIB 4,037 (35%) GIB 993 GIB BBG Retail Corporate Investment Banki
Slide 22: Deposits by SBG
Deposits by SBG RM mil TSY CIB Composition Dec 2013 137,741 +17% +9% 7% (7%) (7%) TSY 6,075 Jun 2014: RM42,100 mil Jun 2014: RM38,284 mil (13%) 26% Dec 2013: RM36,025 mil Dec 2013: RM35,214 mil (27%) 28% (26%) (45 (45%) CIB 3,070 %) Retail GIB 26% (35%) 13% (26%) Retail 1,757 +5% +8% (14%) Jun 2014:
Slide 23: Asset Quality
Asset Quality Gross Impaired Loans Ratio Gross Impaired Loans Ratio (%) by Purpose (%) Working Capital Purchase of Residential 4.59 Property 3.59 6.1 5.3 5.3 3.9 4.7 4.4 3.4 3.36 3.15 2.8 2.99 2.95 2.92 2011 2012 2013 Jun 2011 2012 2013 Jun 2.81 2.68 2014 2014 2.45 2.03 1.99 1.96 1.99 1.84 1.78 Purc
Slide 24: RHB Capital: Capital Position & Market Capitalisation
RHB Capital : Capital Position & Market Capitalisation N1 Leverage Ratio Gearing and Double Leverage N2 Multiple (times) Times 13.0 13.1 0.8 152% 149% 12.5 0.7 0.63 136% 134% 135% 0.6 0.54 130 % 11.6 11.4 0.5 0.4 0.39 0.36 0.38 0.3 0.2 80% 2010 2011 2012 2013 Jun 2014 Dec 2010 Dec 2011 Dec 2012 Dec
Slide 25: Capital Position (1/2)
Capital Position (1/2) RHB Bank Group: Capital Development in H1 2014 ▲0.7% 14.3% ▼0.4% ▼0.6% 14.0% 10.8% 10.7% 10.3% 10.3% 8.0% 5.5% 4.0% Dec 2013 Increase Effect of Increase in Jun 2014 2014 Requirements in CET1 Transitional Business Volume Treatment CET 1 Tier 1 Total Capital RHB Bank RM bil To
Slide 26: Capital Position (2/2)
Capital Position (2/2) RM bil RHB Islamic Bank RHB Investment Bank RM bil 16.3% 18% 2.5 30% 6.5 14.4% 16% 2.3 2.1 24.6% 25% 20.8% 5.5 14% 1.9 4.5 13.9% 12% 1.7 20% 12.7% 1.5 3.5 10% 1.3 1.0 1.0 1.1 1.1 2.7 15% 1.1 2.1 8% 2.5 2.0 2.1 0.9 10% 6% 0.7 1.5 0.5 4% 5% 0.3 0.5 2% 0.1 -0.1 0% -0.5 Dec 2013 J
Slide 27: Key Business Initiatives Update
Key Business Initiatives Update Contribution to Group and Growth Bank@ Work Secured PBT PBT Contribution Workforce Base Companies -15.4% RM64.1 mil -15.4% 4.7% -35.6% -2.5% H1 2014 +0.4% H1 2014 +41% +101% Jun 2014: 2,355 Jun 2014: 227,957 H1 2013: RM75.8 mil H1 2013: 7.2% Dec 2013: 1,670 Dec 2013:
Slide 28: Executive Summary H1 2014 Financial Results Summary
Executive Summary H1 2014 Financial Results Summary
Slide 29: Summary
Summary Summary H1 2013 financial performance was broadly in line with the Group’s 2014 targets. The Group has successfully launched several initiatives under the IGNITE 2017 transformation programme during the year: i) Leverage Islamic Banking Model ii) Regional Treasury in Singapore iii) Launched
Slide 30: www.rhbgroup.com
www.rhbgroup.com INVESTOR RELATIONS CONTACT: Ms Yap Choi Foong Group Chief Financial Officer +(603) 9280 2489 cfyap@rhbgroup.com Mr Khairul Rifaie Head, Investor Relations / Chief Financial Officer, RHB Bank Berhad +(603) 9280 5711 khairul.rifaie@rhbgroup.com This material is prepared for general ci
Slide 31: Key Business Highlights
Key Business Highlights
Slide 32: Retail Business Performance
Retail Business Performance Mortgage Personal Use 7.7% 8.9% 9.0% 7.3% 7.0% 7.0% 7.4% 7.4% 7.8% 6.7% 28.3 7.2 7.3 22.2 25.5 5.0 5.8 18.8 20.6 3.5 2010 2011 2012 2013 Jun 2014 2010 2011 2012 2013 Jun 2014 Mortgage Loans (RM bil) Market Share Personal Use (RM bil) Market Share Auto Finance Credit Card
Slide 33: CIB Market Share
CIB Market Share H1 2014 FY 2013 FY 2012** Market Share Ranking Market Share Ranking Market Share Ranking Debt Capital Market * 7.9% 4 16.3% 4 14.9% 4 Mergers & Acquisitions - by value 24.9% 2 11.8% 3 7.1% 11 - by deal count NA 1 NA 1 NA 1 Equities Capital Market ^ 5.7% 6 7.9% 3 2.6% 11 ** Combined
Slide 34: Equities, Futures & Asset Management
Equities, Futures & Asset Management H1 2014 FY 2013 Total AUM RM bil 11.0% Equities Market Market 10.0% 10.0% Ranking Ranking (by value) Share Share 46.4 Malaysia 2.6% 1.7% 39.3 5.4 - By value 9.6% 2 8.8% 3 1.3 31.0 - By volume 13.8% 2 14.3% 1 0.6 22.4 Singapore 4.8% 11 7.4% 6 21.7 14.9 Hong Kong 0
Slide 35: RHB-OSK Integration Update
RHB-OSK Integration Update Recap: Estimated Synergies Over 3 Years RM mil 324 350 15 34 300 250 149 200 112 63 5 275 150 5 17 100 5 15 50 2 92 127 0 56 Year 1 Year 2 Year 3 Total Synergies RM mil 187 5 5 107 80 Revenue 2 1 3 177 Cost 4 104 73 Funding Year 1 PTD Year 2 Cumulative Total 35
Slide 36: Business Banking and SME
Business Banking and SME RM bil Gross Loans RM bil Customer Deposits 30. 0% 30. 0 14.1% 20.1% 35. 0% 11.8% 25. 0 8.8% 30. 0% 5.2% 10.6% 9.3% 9.3% 11.4% 25. 0% -0.4% 20. 0% 10. 0% 25. 0 15. 0% 10. 0% 20. 0 5.0 % 0.0 % -10.0% 20. 0 -5.0% -10.0% -15.0% 15. 0 -20.0% -25.0% -30.0% 15. 0 -30.0% -35.0% -40
Slide 37: RHB Bank Singapore Business Performance
RHB Bank Singapore Business Performance 50 PBT 160 .0% Loans, Deposits & Total Assets SGD mil 155 .0% 45 150 .0% 145 .0% 140 .0% SGD bil 6.2 135 .0% 130 .0% 125 .0% 40 120 .0% 115 .0% 110 .0% 5.2 105 .0% 35 100 .0% 95. 0% 4.4 3.9 90. 0% 85. 0% 30 80. 0% 75. 0% 70. 0% 3.4 3.6 25 65. 0% 60. 0% 55. 0%