Rhb Bank Bhd. · MYX:RHBBANK

Rhb Bank Bhd — Shareholder Meeting (May 2020)

26 slides from Rhb Bank Bhd's shareholder meeting presentation, May 29, 2020

  1. Slide 1: RHB Bank Berhad 54th Annual General Meeting

    RHB BANK BERHAD 54th ANNUAL GENERAL MEETING Khairussaleh Ramli 29th May 2020

  2. Slide 2: Agenda

    1. Key Highlights 2. FY2019 Performance Review 3. Strategy Update 4. Sustainability Update 5. Concluding Remarks

  3. Slide 3: Key Highlights

    Key Highlights

  4. Slide 4: Highlights of FY2019

    4 of Highlights of FY2019 26  Achieved record net profit of RM2.48 billion, 7.7% Y-o-Y increase  ROE at 10.3%; 10.5% if normalised for FVOCI reserves growth Y-o-Y  Fundamentals continued to strengthen; improved both asset quality and cost-income-ratio (CIR), robust capital position and ample liqu

  5. Slide 5: FY2019 Performance Review

    FY2019 Performance Review

  6. Slide 6: 7.7% growth in net profit for FY2019

    6 of FY2019 Performance Review 26 We delivered 7.7% growth in net profit for FY2019 from resilient income growth and lower allowances for expected credit losses, while closely managing our overheads Total Fund Based Non-Fund Based Income Income Income +4.3% +0.4% +14.7% FY2019: RM7.10 bil FY2019: RM

  7. Slide 7: FY2019 net fund based income growth was small

    7 of FY2019 Performance Review 26 FY2019 net fund based income growth was small, impacted by OPR cut in May 2019 and higher funding cost RM’ bil Y-o-Y: +0.4% 10.83 11.39 5.89 6.43 4.94 4.96 FY2018 FY2019 Fund Based Income Fund Based Expenses Net Fund Based Income NIM 2.24% 2.12%

  8. Slide 8: Non-fund based income grew strongly at 14.7%

    8 of FY2019 Performance Review 26 Non-fund based income grew strongly at 14.7% driven by higher investment and trading income, insurance underwriting surplus and IB related fee income Y-o-Y Non-Fund Based Income RM’mil FY2018 FY2019 Change Total Fee Income (A) 1,070 1,066 -0.4% 27% 30% of which: IB

  9. Slide 9: Operating expenses tightly managed; CIR improving

    9 of FY2019 Performance Review 26 Operating expenses tightly managed; Positive JAWS maintained with CIR improving further to 48.9% Y-o-Y: +3.4% RM’ mil 3,472 3,358 +2.9% 367 377 +3.3% 253 Administration & 245 General Expenses +6.4% 741 788 Marketing Expenses +2.4% Establishment Costs 2,005 2,054 Per

  10. Slide 10: Group loans grew 4.3% Y-o-Y

    10 of FY2019 Performance Review 26 Group loans grew 4.3% Y-o-Y led by mortgage, SME and Singapore; Further progress achieved in portfolio rebalancing Gross Loans % Composition FY2018 FY2019 (RM' bil) Change FY2018 FY2019 Retail Banking 84.6 90.1 +6.4% 50% 52% of which: Mortgage 53.5 58.6 +9.6% 32% 3

  11. Slide 11: Total deposits grew 6.5% Y-o-Y

    11 of FY2019 Performance Review 26 Total deposits grew 6.5% Y-o-Y mainly from higher fixed deposits; CASA posted an encouraging annual growth of 5.5% with CASA ratio standing at 25.7%, LCR comfortable, improved to 152.7% Deposits by Type FY2018 FY2019 % Change (RM’bil) Fixed DepositsN1 132.5 141.7 +

  12. Slide 12: Asset quality improved

    12 of FY2019 Performance Review 26 Asset quality improved from active account management, credit charge ratio declined and loan loss coverage remained above 100% RHB Capital RHB Bank 150 .0% 102.8% 103.0% 107.9% 83.9% 100 .0% 74.7% 4.5 0 4.4 0 2.43% 50. 0% 4.3 0 4.2 0 2.23% 2.06% 1.97% 4.1 0 4.0 0 1

  13. Slide 13: Best capitalised bank in Malaysia

    13 of 2019 Performance Review 26 Best capitalised bank in Malaysia with all key financial ratios on improving trend Return on Equity Cost-to-Income Ratio 58.8% 10.0% 10.3% 10.3% 9.1% 50.0% 49.9% 49.3% 8.6% 48.9% N1 FY2015 FY2016 FY2017 FY2018 FY2019 FY2015 FY2016 FY2017 FY2018 FY2019 N1 Including Ca

  14. Slide 14: Proposed final cash dividend

    14 of FY2019 Performance Review 26 The Board has proposed a final cash dividend of 18.5 sen per share; Together with the interim dividend paid, total dividend of 31.0 sen per share for FY2019 represented 50.1% payout Dividend Per Share (sen) RHB Capital RHB Bank 50.1% 50.0% 35.7% 33.9% 28.6% 30.8% 3

  15. Slide 15: Strategy Update

    Strategy Update

  16. Slide 16: FIT22 Key Highlights in FY2019

    16 of FIT22 Key Highlights in FY2019 26 Fund our Journey Grow Affluent, SME Continue to win in the SME Increase share of wallet: leveraging on SME Boost retail deposits space Large Caps & Mid Caps customer base  Premier customers up  SME loans 4.9% to RM19.9 Fee Income Market Share  Deposits 15.2

  17. Slide 17: Other Group Achievements in FY2019

    17 of Other Group Achievements in FY2019 26 Strengthen Talent Base Enhance Brand Value Improve Customer Experience  Identified 1,153 talents across the Group and  RHB brand refresh led to improved  Rolled out the RHB Way Service Culture enrolled them into accelerated leadership brand recognition

  18. Slide 18: Agile has delivered meaningful benefits to RHB

    18 of Agile has delivered meaningful benefits to RHB across 4 key objectives 26 Improved customer Faster speed-to- Increased Greater employee experience market productivity engagement Delivered innovative and first- ~30% accelerated TAT speed 15% improved in Strong improvement across of-its kind pro

  19. Slide 19: Sustainability Update

    Sustainability Update

  20. Slide 20: Group Sustainability Framework and ESG Accolades

    20 of Group Sustainability Framework and ESG Accolades 26 20 ESG Risk Management: Sustainable Financing: • ESG risk-related activities identified under Prohibited • Committed to extend RM5 billion by 2025, to support Credits green activities (RM2.8 billion extended as at Dec 2019) Sustainable & • ES

  21. Slide 21: COVID-19 Updates

    COVID-19 Updates

  22. Slide 22: Measures to mitigate effects of COVID-19

    22 of RHB implemented comprehensive measures to mitigate effects of COVID-19 26 22 Customers Employees Community  Retail and SME:  During MCO, ~50% of branches  Contributed RM1 mil to Ministry of  6-month automatic moratorium for Retail and SME closed, only ~20% of branch staff Health for essent

  23. Slide 23: Concluding Remarks

    Concluding Remarks

  24. Slide 24: Concluding Remarks

    24 of Concluding Remarks 26  The Group recorded its highest ever profit in 2019 and continued to make improvements in its business fundamentals  Results demonstrate the Group’s strengths and resilience operating under challenging environment and continued progress in FIT22 strategy implementation

  25. Slide 25: RHB CSR Programme

    RHB CSR Programme Trying times may bring you down We're here to keep you up and running.

  26. Slide 26: Thank You

    THANK YOU www.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 needs of any specific audience. The content furthermore is believed t

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