Hong Leong Bank Bhd · MYX:HLBANK
Hong Leong Bank Bhd — 9MFY24 Earnings Presentation
22 slides from Hong Leong Bank Bhd's earnings presentation, May 30, 2024
Slide 1: 9MFY24 Results Analyst Presentation
9MFY24 RESULTS ANALYST PRESENTATION 30 MAY 2024 The information contained in this presentation is strictly confidential for information of the intended recipient(s) only. The information may not be reproduced, redistributed or transmitted, directly or indirectly by any means to any other person or p
Slide 2: Financial Highlights: 9MFY24
1 FINANCIAL HIGHLIGHTS: 9MFY24 HLB 9MFY24 ended 31 March 2024 2
Slide 3: Key Financial Highlights
Key Financial Highlights Total Income Opex & CIR Profit before associates contribution • Sustainable topline underpinned by • Strategic cost management initiatives deliver • Sustained underlying profitability amidst the loan/financing expansion and effective healthy CIR rapidly changing economic lan
Slide 4: Management Guidance
Management Guidance Target FY2024 Achieved 9MFY24 Gross Loans Growth 6%-7% 7.8% Net Interest Margin 1.8%-1.9% 1.85% Management Cost-to-Income Ratio ~40% 39.8% guidance remained on 0.57% track in light of a GIL Ratio <0.70% sound performance Net Credit Cost ~10 bps -4 bps CASA Mix >30% 30.6
Slide 5: Profit & Loss
Profit & Loss 3,162 7.1% 2,954 y-o-y 1,088 1,044 930 1,030 RM’mil 865 1.2% 2,635 2,666 y-o-y 889 893 884 799 702 Continue to Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 9MFY23 9MFY24 deliver above Profit before associates contribution Profit after tax RM1 billion PAT for the quarter, Change % Change % RM’mil
Slide 6: Net Interest Income & NIM
Net Interest Income & NIM 2.03% 1.85% 1.87% 2 bps ▲ q-o-q 1.85% Fourth 1.84% consecutive 1.83% 1.82% 3,463 3,463 quarter of improvement in NIM led by 1,156 1,181 ▲ 2.2% RM'mil 1,126 q-o-q loans/financing 1,089 growth and 1,033 effective asset/liability management Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 9
Slide 7: Non-Interest Income
Non-Interest Income 21.0% 19.4% 9MFY24 919 77 831 Wealth 123 Management and ▲ 28.1% Healthy RM’mil Bancassurance RM167.0 mil contribution 390 Income 213 supported by improved wealth performance, Fee income: Credit Card ▲ 11.0% higher credit of which Related Fees RM175.1 mil card fee and 452 496 fran
Slide 8: Operating Expense
Operating Expense 37.2% Admin & general Domestic 35.3% 14% CIR Personnel cost 55% Marketing ▪ Disciplined 8% control over 39.8% 9MFY24 expenses 37.6% through strategic cost 1,646 1,711 Establishment management 222 247 23% initiatives 128 RM’mil 151 404 390 ▪ Operating RM'mil expenses 587 578 577 rem
Slide 9: Loans & Financing
Loans & Financing +4,884 +675 +7,950 7.8% RM’mil (+6.8%) (+10.8%) (+5.3%) 187,810 ▲ 174,228 y-o-y 8.0% y-o-y Maintained commendable growth Total Loans 9MFY23 Retail Business & Corporate International Total Loans 9MFY24 Operations momentum driven by 9MFY24 expansion in key Domestic segments of Reside
Slide 10: Asset Quality
Asset Quality Gross Impaired Loans/Financing (GIL) Loans/Financing Impairment Coverage (LIC) 1.80% 1.71% 1.61% Maintaining 282% prudent 239% loans/financing 224% 212% impairment 0.57% 0.57% 0.49% coverage with 169% 154% preemptive RM'mil buffers of RM574 million results in 1,042 1,074 99.0% strong a
Slide 11: Asset Quality
Asset Quality Malaysia Overseas 0.59% 0.57% 0.58% 0.43% 0.45% 0.50% 982 972 1,007 61 67 60 FY23 H1FY24 9MFY24 FY23 H1FY24 9MFY24 Asset quality remains healthy across key Residential Properties Transport Vehicles SME portfolios 1.16% 1.20% 1.06% 0.45% 0.40% 0.42% 0.31% 0.33% 0.22% 351 397 430 404 367
Slide 12: Deposit
Deposit 4.7% RM’mil +4,613 +402 +344 + 4,105 ▲ (+0.8%) (+1.1%) (+24.3%) 212,417 y-o-y 202,956 (+4.5%) Stable funding base with focus on driving CASA Total Deposits Retail Business & Global Markets International Total Deposits 9MFY23 Corporate Operations 9MFY24 growth supported by the Bank’s 9MFY24 c
Slide 13: Liquidity & Capital
Liquidity & Capital Liquidity Ratios Capital Adequacy ▪ Prudent liquidity and capital 137% 138% 137% positions for sustainable business 119% 120% 120% 15.7% 15.9% 15.5% growth 13.6% 13.9% 13.5% ▪ LTF and LTFE Average LDR of top 5 banks ratios are well Dec-23: 90.4% in line with the 85.4% 86.2% 86.8%
Slide 14: Shareholder Value
Shareholder Value Return on Equity & Return on Assets Net Assets & Earnings Per Share • Commendable ROE of 12.0% 10.9% 11.8% 12.0% contributed by 186 sound 161 154 140 144 business performance 1.43% 1.48% 1.34% 16.6 16.1 17.7 • Improved NAV 14.4 15.1 per share and EPS at RM17.7 and 154 sen respectiv
Slide 15: Performance of Associated Company: Bank of Chengdu Co., Ltd.
Performance of Associated Company: Bank of Chengdu Co., Ltd. Financial Highlights for financial year ended 31 December 2023 (audited) and Q1 ended 31 March 2024 (unaudited) Operating Income Q1FY24 RMB'mil Strong Gross Loan RMB690 bil 20,241 7% 21,702 ▲ 27% y-o-y Improved GIL Ratio 0.66% 5,305 5,638
Slide 16: Closing Remarks
2 CLOSING REMARKS HLB 9MFY24 ended 31 March 2024 16
Slide 17: Formed Strategic Collaboration with MIDA
Formed Strategic Collaboration with MIDA 1 Strategic Alliance 4 Signing of MoU Ceremony Promotes sustained business growth Launch of MIDA’s novel coffee table book “Stepping Stones: and engagement across MIDA’s Journey” | SME Showcases MIDA’s past achievements and resilience | Commercial 2 Commitmen
Slide 18: Closing Remarks
Closing Remarks ▪ Commendable underlying results driven by strong growth momentum in loans/financing portfolio, improvements in asset quality metrics and robust profit contribution from BOCD ▪ Effective management over expenses led to stable operating expenses with CIR remained Sound business below
Slide 19: Supplementary Information
3 SUPPLEMENTARY INFORMATION HLB 9MFY24 ended 31 March 2024 19
Slide 20: Group Performance
Group Performance Change Change RM’mil 9MFY23 9MFY24 Q3FY24 (YoY) (YoY) Net interest income 3,463 3,463 0.0% 1,181 14.3% Non-interest income 919 831 -9.6% 255 -29.9% Total income 4,382 4,294 -2.0% 1,436 2.8% Operating expenses (1,646) (1,711) 3.9% (577) 3.1% Operating profit before allowances 2,736
Slide 21: HLISB Key Highlights
HLISB Key Highlights Change Change RM’mil 9MFY23 9MFY24 Q3FY24 (YoY) (YoY) Total net income 660 698 5.8% 241 26.7% Operating expenses (210) (232) 10.3% (82) 10.6% Profit before taxation and zakat 449 466 3.7% 160 37.0% Profit after taxation and zakat 337 350 4.0% 120 37.5% Cost-to-income ratio 28.7%
Slide 22: Thank You
Disclaimer This presentation has been prepared by Hong Leong Bank (“HLB”) for selected recipients for information purposes only and the information contained herein has been obtained from sources believed to be reliable. The information contained herein is believed to be correct as of the date of th
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