Rhb Bank Bhd. · MYX:RHBBANK
Rhb Bank Bhd — RHB Capital Berhad — Q1 2011 Earnings Presentation
29 slides from Rhb Bank Bhd's earnings presentation, May 24, 2011
Slide 1: RHB Capital Berhad 1st Quarter 2011 Financial Results
RHB Capital Berhad 1st Quarter 2011 Financial Results Mr. Kellee Kam Managing Director RHB Capital Berhad 24 May 2011 STRICTLY PRIVATE & CONFIDENTIAL
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS 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 t
Slide 3: Agenda
Agenda 1 Since We Last Spoke 2 1st Quarter 2011 Financial Results Review 3 To Sum Up 3 RHB Banking Group
Slide 4: Since We Last Spoke (1/2)
Since We Last Spoke (1/2) “Easy by RHB” outlets increased to 155 currently Launched 2 transaction banking services: Business Expansion / i. Chinese Renminbi Trade Products and Payment Services; and Updates ii. Enhanced Export Collection Services Launched 1st RHB-GS BRIC (Brazil, Russia, India
Slide 5: Since We Last Spoke (2/2)
Since We Last Spoke (2/2) Easy by RHB : • The Asian Banker Award - recognised for Best Business Model in 2010 • IDC Financial Insight - Special Citation Award for Operational Efficiency Awards • The Brand Laureate - Best Brands in Financial Services in Retail Banking Group Transaction Banking •
Slide 6: RHB Capital Group Financial Report Card
RHB Capital Group Financial Report Card Top level indicators Q1 2010 Q4 2010 Q1 2011 Shareholders’ ROE Return (%) 15.6% 15.2% 15.1% ROA 1.2% Asset Efficiency 1.2% 1.2% (%) Productivity Net Interest 2.82% 2.59% 2.60% Asset Yield Margin (%) Cost to Cost Efficiency income 41.8% 40.5% 43.2% Ratio (%) Ca
Slide 7: Agenda
Agenda 1 Since We Last Spoke 2 1st Quarter 2011 Financial Results Review 3 To Sum Up 7 RHB Banking Group
Slide 8: Key Financial Highlights - 1st Quarter 2011
Key Financial Highlights - 1st Quarter 2011 Q1 2011 Net profit of RM382 million, up 9% y-o-y and 1% q-o-q EPS at 17.7 sen, up 9% y-o-y Annualised ROE and ROA at 15.1% and 1.2% respectively Cost to Income Ratio increased to 43.2% from 41.8% in Q1 2010 Total assets increased by 2.9% to RM133
Slide 9: Quarterly Operating Performance Trend
Quarterly Operating Performance Trend RM’mil 700 15.6% 15.3% 15.1% 15.2% 15.1% 600 14.2% 14.5% 13.4% 524 512 500 11.6% 474 446 448 453 400 382 400 377 380 335 336 350 339 351 315 301 300 229 200 100 0 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Profit before tax Net profit Annualised ROE 9 RHB Bank
Slide 10: Summary of Income Statement
Summary of Income Statement Q-o-Q Y-o-Y Q1 Q4 Q1 Change Change RM mil 2011 2010 2010 % % Net Interest Income 681 739 629 -8 8 Other Operating Income 267 280 248 -5 8 Income From Islamic Banking Business 91 89 83 2 10 Total Income 1,039 1,108 960 -6 8 Other Operating Expenses (449) (449) (401) - 12 O
Slide 11: Analysis of Total Income
Analysis of Total Income Q-o-Q Y-o-Y Q1 Q4 Q1 Change Change RM mil 2011 2010 2010 % % Net Interest Income 681 739 629 -8 8 Other Operating Income 267 280 248 -5 8 Income from Islamic Banking Business 91 89 83 2 10 Total Income 1,039 1,108 960 -6 8 2.87% 3% Total Income Mix 2.81% 2.82% 2.82% Net 2.79
Slide 12: Other Operating Expenses
Other Operating Expenses Q-o-Q Y-o-Y Q1 Q4 Q1 Change Change RM mil 2011 2010 2010 % % Personnel costs 298 255 243 17 23 Establishment costs 91 89 90 2 1 Marketing expenses 27 51 20 -47 35 Admin & General expenses 33 54 48 -39 -31 Other Operating Expenses 449 449 401 - 12 Cost to Income Ratio (%) 43
Slide 13: Allowance for Impairment on Loans, Financing and Other Losses
Allowance for Impairment on Loans, Financing and Other Losses Q-o-Q Y-o-Y Q1 Q4 Q1 Change Change 2011 2010 2010 RM mil % % Individual impairment allowance (7) - 39 - >-100 Collective impairment allowance 165 105 90 57 83 Impaired loans and financing recovered (79) (40) (41) 98 93 Impairment allowanc
Slide 14: Key Balance Sheet Items
Key Balance Sheet Items Q-o-Q Y-o-Y Mar Dec Mar Change Change 2011 2010 2010 % % RM mil Total Assets 133,136 129,325 114,966 3 16 Total Financial Assets/Investments 27,147 25,017 23,364 9 16 - Financial assets HFT 1,357 772 1,239 76 10 - Financial investments AFS 13,507 13,375 10,312 1 31 - Financia
Slide 15: Loans, Advances and Financing
Loans, Advances and Financing Q-o-Q Y-o-Y Composition of Loan Book - Mar Dec Mar by Interest/Profit Rate Sensitivity Change Change 2011 2010 2010 RM mil % % Working capital 21,864 20,694 21,789 6 - Purchase of residential property 19,429 18,841 16,538 3 17 Fixed Rate 31% Purchase of non-residential
Slide 16: Loans, Advances and Financing - Approvals & Disbursements
Loans, Advances and Financing - Approvals & Disbursements Loans Approved Loans Disbursed RM bil RM bil 12 35% 8 35% 10.0 10 1.3 6 5.4 7.4 8 0.9 0.9 1.6 4.0 0.1 1.2 4 6 0.6 0.8 1.1 0.1 1.7 0.7 1.0 4 0.7 2 0.8 1.3 4.1 2.9 0.4 2 0.7 1.1 0.7 1.1 1.0 0 0 N1 N1 Mar-10 Mar-11 Mar-10 Mar-11 Residential Work
Slide 17: Asset Quality
Asset Quality Gross impaired loans ratio improved by 0.27% to 4.12% New impaired loans formation improved to 0.78% from from Dec 2010 1.70% a year ago RM mil Net decrease of RM77 million % 6000 6.0 6.66 6.46 4.95 5.00 4.98 4.67 5.90 5.64 844 -808 -113 4000 4.0 4.39 4.12 3.96 3.88 3.84 3.67 3.20 3.62
Slide 18: Customers Deposits
Customers Deposits Customers Deposits Customers Deposits : Composition Q-o-Q Y-o-Y Mar Dec Mar Change Change 100% RM mil 2011 2010 2010 % % 6% 6% 90% Fixed Deposits 72,616 68,830 59,664 6 22 21% 20% of which MMTD 25,525 24,505 19,591 4 30 80% Demand Deposits 19,922 19,523 18,537 2 7 70% Savings Depo
Slide 19: Loans and Deposits
Loans and Deposits Loans Customer Deposits RM bil RM bil 200 20% 25% 250 50% 17% 32% 13% 15% 200 19% 30% 9% 10% 12% 15% 11% 150 7% 13% 13% 10% 11% 5% 150 11% 8% 9% 7% 100 83.7 87.3 -2% -10% 1% 94.4 98.9 63.2 69.6 -5% 100 84.8 56.8 75.8 74.0 -30% 50 -15% 50 -50% 0 -25% 0 -70% 2007 2008 2009 2010 Mar
Slide 20: Business Performance - Retail (1/2)
Business Performance - Retail (1/2) RM‟mil 7.7% 7.3% 7.1% 7.4% 7.7% 7.7% 4 years CAGR to Dec 2010 of 10% 18,841 19,429 14,089 16,002 12,864 13,153 Mortgage 2006 2007 2008 2009 2010 Mar 11 Mortgage loans Market Share RM‟mil 15.6% 19.9% 7.0% 8.1% 9.3% 4,599 5.6% 4 years CAGR to Dec 2010 of 3,344 4
Slide 21: Business Performance - Retail (2/2)
Business Performance - Retail (2/2) RM‟mil 6.5% 6.9% 6.6% 6.7% 6.7% 5.7% 3,708 3,535 2,385 2,601 2,749 Personal use 2,004 2006 2007 2008 2009 2010 Mar 11 Receivables Market Share RM‟mil 6.8% 6.8% 7.0% 6.5% 6.8% Prosperity Rabbit Deposits 25,333 and Step-Up Rate FD 21,925 22,343 24,349 campaigns -
Slide 22: Business Performance - CIB
Business Performance - CIB YTD Mar 2011 FY 2010 FY 2009 Market Share Rank Market Share Rank Market Share Rank Mergers & Acquisitions 4.8% 4th 58.8% 1st # 9.0% 3rd Equities^* 3.6% 4th 7.7% 3rd 8.9% 3rd Debt Capital Market** 10.8% 4th 9.9% 3rd ## 13.2% 3rd Broking (by value) 6.7% 4th 6.6% 5th 5.9% 8th
Slide 23: RHB Bank Capital Position
RHB Bank Capital Position Quarterly Trending RWA & Capital Ratios RM bil 90.0 15.7% 13.8% 13.2% 13.0% 13.0% 14.0 14.9% 13.7% 13.8% 13.8% 13.0% 13.0% 10.5% 13.0% 10.0% 9.9% 9.9% 12.0 10% 80.0 10.8% 11.7% 10.4% 10.5% 10.5% 10.0 9.8% 0.7 9.1% 9.3% 9.9% 3.4 8.8% 7.9 7.9 8.0 7.5 7.3 6.9 6.9 70.0 6.0 6.0
Slide 24: RHB Islamic Bank Capital Position
RHB Islamic Bank Capital Position Quarterly Trending RM bil 16% 1.5 14.6% 14.0% 14.0% 13.8% 13.6% 13.6% 14% 13.5% 13.2% 12.7% 12.5% 12.5% 12.5% 12.7% 12% 12.2% 12.1% 12.2% 11.8% 11.4% 1.0 10% 0.9 0.9 0.9 0.9 0.9 0.9 0.8 0.8 0.8 8% 6% 0.5 4% 0.2 2% 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.0 0% Mar 09 June 0
Slide 25: Capital Position - RHB Investment Bank & RHB Capital
Capital Position - RHB Investment Bank & RHB Capital RHB Investment Bank RHB Capital RM bil Times 1.4 36% 33.9% 0.7 154% 152% 153% 153% 32.0% 152% 152% 31.3% 151% 149% 149% 29.8% 31% 1.2 28.8% 28.3% 27.3% 29.5% 0.60 0.6 24.6% N1 26% 22.7% 27.7% 0.56 1.0 23.3% 22.9% 0.55 0.55 0.54 0.54 24.1% 0.52 22.
Slide 26: Return to Shareholders
Return to Shareholders Building value for the shareholders Market Capitalisation and Share Price Trend Dividend Trend - 2005 to 2010 RM mil RM Interim Final 20,000 18,778 18,477 10 18,000 9 21.38% 16,000 8.72 8.58 8 17.45% 14,000 12,598 7 10.6% 12,000 11,413 6 10,000 5.85 8,399 5 6,236 5.30 8.6% 8,0
Slide 27: Agenda
Agenda 1 Since We Last Spoke 2 1st Quarter 2011 Financial Results Review 3 To Sum Up 27 RHB Banking Group
Slide 28: To Sum Up
To Sum Up 1 Satisfactory Q1 2011 results - showing strong momentum in business and continuous asset and liability growth, continue to benefit from the disciplined execution of strategies and remain well positioned to expand market share in targeted business and product segments; 2 Loans and deposits
Slide 29: End
End STRICTLY PRIVATE & CONFIDENTIAL