Hong Leong Bank Bhd · MYX:HLBANK
Hong Leong Bank Bhd — Q1 FY2023 Earnings Presentation
21 slides from Hong Leong Bank Bhd's earnings presentation, November 2022
Slide 1: Confidentiality notice
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Slide 2: HLB Q1FY23 ended 30 September 2022
1 HLB Q1FY23 ended 30 September 2022 2
Slide 3: Key Financial Highlights
Key Financial Highlights Starting the new financial year on a positive note Total Income Opex & CIR Operating Profit • Encouraging topline growth driven by • Delivering positive JAWS with an improved • Healthy operating profit on the back of loan/financing expansion and effective CIR strong underlyi
Slide 4: Management Guidance
Management Guidance On track to meet all KPIs Target FY2023 10-15 ~7% >2.10% ≤40% <0.75% ~11% >30% bps Gross Net Cost-to- Gross Net Credit Return on Loan Interest Income Impaired CASA Mix Cost Equity Growth Margin Ratio Loan Ratio 7%-7.5% ~2.14% ≤38% ~0.60% ~10 bps >12.0% Achieved Q1FY23 P P P P P P
Slide 5: Profit & Loss
Profit & Loss Healthy topline and stronger associates contribution leading to a commendable performance Profit After Tax 111 9 11 47 RM’mil 33 22 981 858 PAT Q1FY22 Net Interest Non Interest Opex Loan & Other Associates Tax PAT Q1FY23 Income Income Impairment Contribution Allowances RM’mil Q1FY22 Q1
Slide 6: Net Interest Income & NIM
Net Interest Income & NIM NIM rebounded underpinned by stronger loan/financing growth and effective asset/liability management 2.21% 8 bps 5 bps 2.19% 2.18% 2.15% q-o-q y-o-y 2.13% 2.10% RM'mil 1,232 6.2% 9.9% 1,176 1,162 1,159 q-o-q y-o-y 1,121 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Net interest income
Slide 7: Non-Interest Income
Non-Interest Income Higher fee income and sustained performance in treasury market activities 18.8% 17.9% RM’mil 259 268 9 14 Credit Card Q1FY22 Q1FY23 22.5% 103 99 Related Fees RM42 mil RM52 mil Wealth Fee income: Q1FY22 Q1FY23 148 156 of which Management RM58 mil RM45 mil 22.7% Income Q1FY22 Q1FY2
Slide 8: Operating Expense
Operating Expense Optimised CIR underpinned by topline growth and discipline in cost management Operating Expenses Domestic 34.9% Admin & 33.9% general CIR 13% Personnel cost 53% Marketing 9% 36.8% Q1FY23 36.0% RM’mil 541 507 72 Establishment 59 25% 28 50 134 134 Improved CIR – opex managed at simil
Slide 9: Loans/Financing
Loans/Financing Continue to maintain robust growth traction led by expansion in key segments 3,268 3,252 7,053 (+7.9%) (+34.3%) 100 (+6.7%) 8.8% 169,452 RM’mil y-o-y 155,779 Total Loans Q1FY22 Retail Business & International Modification Loss Total Loans Q1FY23 Corporate Operations Domestic Resident
Slide 10: Asset Quality
Asset Quality Solid asset quality indicators with comfortable level of loan/financing impairment coverage Gross Impaired Loans/Financing (GIL) Loan/Financing Impairment Coverage (LIC) 1.78% 1.81% 317% 1.62% 1.54% 1.43% 282% 282% 247% 0.78% 0.61% 212% 212% 212% 0.46% 0.49% 0.49% 188% RM'mil 142% 118%
Slide 11: Asset Quality
Asset Quality Credit portfolio remained healthy across key segments Malaysia Overseas 0.48% 0.51% 0.52% 0.22% 0.12% 0.12% 707 806 810 27 11 14 FY21 FY22 Q1FY23 FY21 FY22 Q1FY23 Group Residential Properties Transport Vehicles SME 0.43% 0.35% 0.38% 0.38% 1.25% 1.28% 0.22% 1.10% 0.20% 376 387 315 317 2
Slide 12: Deposit
Deposit Solid funding base underpinned by CASA expansion 7.7% CASA Fixed Deposits y-o-y Sep-22 Market Share: 7% Sep-22 Market Share: 8% Sep-22 Market Share: 8% Q1FY22 Q1FY23 Q1FY22 Q1FY23 RM59.2 bil RM63.7 bil 7.7% RM93.5 bil RM97.6 bil 4.4% RM'mil 197,292 197,400 183,290 183,221 CASA Ratio 32.3% 17
Slide 13: Liquidity & Capital
Liquidity & Capital Strong liquidity and capital positions; supporting business growth whilst delivering returns back to shareholders Loan-to-Deposit Ratio (LDR) Capital Adequacy^ 16.7% 16.1% 88.6% 87.6% 87.0% 86.4% 86.1% 15.7% 15.7% 15.4% 14.5% 14.0% 13.5% 13.6% 13.3% 13.1% 13.4% 84.4% 83.5% 83.9%
Slide 14: Shareholder Value
Shareholder Value Achieving sustainable returns and maintaining solid performance as we continue to focus on our strategic priorities Return on Equity & Return on Assets Net Assets & Earnings Per Share 12.6% 48 11.7% 11.8% 44 42 38 36 15.1 15.2 14.7 14.8 14.4 1.52% 1.43% 1.43% Q1FY22 Q4FY22 Q1FY23 Q
Slide 15: Performance of Associated Company: Bank of Chengdu Co., Ltd.
Performance of Associated Company: Bank of Chengdu Co., Ltd. Financial Highlights for 9M ended 30 September 2022 (unaudited) Robust ROE 18.5% Operating Income Profit After Tax RMB'mil 15,246 13,135 16% 6,752 RMB'mil 5,131 32% Solid Cost-to-income Ratio 23% 9MFY21 9MFY22 9MFY21 9MFY22 Gross Loan GIL
Slide 16: HLB Q1FY23 ended 30 September 2022
2 HLB Q1FY23 ended 30 September 2022 16
Slide 17: Closing Remarks
Closing Remarks Business performance is strong whilst maintaining healthy growth for loan/financing and solid asset quality ▪ Improved topline supported by strong NIM and robust loan/financing expansion. ▪ We continue to manage our cost effectively and strengthen our digitisation efforts; Achieved a
Slide 18: HLB Q1FY23 ended 30 September 2022
3 HLB Q1FY23 ended 30 September 2022 18
Slide 19: Group Performance
Group Performance Change Change RM’mil Q1FY22 Q1FY23 Q4FY22 (YoY) (QoQ) Net interest income 1,121 1,232 9.9% 1,159 6.2% Non-interest income 259 268 3.4% 339 -20.9% Total income 1,380 1,500 8.7% 1,498 0.1% Operating expenses (507) (541) 6.6% (560) -3.5% Operating profit before allowances 873 959 9.9%
Slide 20: HLISB - Key financial highlights
HLISB - Key financial highlights Total Net Income Opex & CIR Profit after Tax and Zakat • Strong growth led by strong financing • Positive JAWS attained with improved CIR • Commendable business performance business, higher non-financing income and consequently higher bottom line lower financing impa
Slide 21: Thank You / Disclaimer
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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