Slide 1: Group Managing Director, RHB Banking Group
Mr. Kellee Kam Group Managing Director RHB Banking Group 26 May 2014
Slide 2: Executive Summary: Q1 2014 Financial Results Summary
Executive Summary Q1 2014 Financial Results Summary
Slide 3: Executive Summary
Executive Summary 1 Pre-tax profit up 29.0% to RM637.4 mil and net profit increased by 26.2% to RM450.7 mil 2 Healthy revenue growth, up 7.8% to RM1.5 bil ♦ Sustained loan expansion and stable margin resulted in higher net interest income ♦ Stronger contribution from customer-related transactions an
Slide 4: RHB Banking Group Scorecard 2014
RHB Banking Group Scorecard 2014 Top Level Indicators Target 2014 Q1 2014 ROE >12.0% 10.6%N1 Loans Growth 12% 3.7%N2 CASA Growth >15% 5.1%N2 Gross Impaired <2.5% 2.54% Loans Ratio Cost to Income Ratio <50% 53.7% International Contribution >12% 10% N1 Annualised N2 Changes for Q1 2014, not annualised
Slide 5: Executive Summary: Q1 2014 Financial Results Summary
Executive Summary Q1 2014 Financial Results Summary
Slide 6: Financial Results
Financial Results Y-o-Y Q-o-Q Q1 Q1 Q4 Year-on-Year: Change Change RM mil 2014 2013 2013 % % ♦ Net interest income increased by 5% on the back of 11.0% conventional loans growth and stable Net Interest Income 819 779 5 864 -5 NIM Other Operating Income 497 450 11 590 -16 ♦ Non-interest income up 11%
Slide 7: PBT by Business Segment
PBT by Business Segment RM mil Composition CIB BBG Q1 2013 494 +240% +28% 2% CIB 13% (3%) 158 (24%) Q1 2014: RM224 mil Q1 2014: RM123 mil 32% Q1 2013: RM66 mil (12%) Q1 2013: RM96 mil BBG 27 17% (17%) Retail GIB Retail 12 36% +5% +1% (44%) GIB 0.1 Q1 2014: RM256 mil Q1 2014: RM16 mil Q1 2013: RM244
Slide 8: Net Interest Income & Islamic Banking Income
Net Interest Income & Islamic Banking Income Net Interest Income RM mil Higher net interest income due to 11% ▲ 5% conventional loans growth 31 71 Effective balance sheet management resulted in NIM stabilising at 2.33% 819 779 Q1 2013 Interest Interest Q1 2014 Income Expense Islamic Banking Inco
Slide 9: Income Mix & NIM
Income Mix & NIM Income Mix 29% 28% 24% 33% 33% 34% 34% 36% 37% 10% 9% 11% 10% 10% 10% 10% 10% 10% 61% 63% 65% 57% 57% 56% 56% 54% 53% Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Net Interest Income Islamic Banking Income Other Operating Income Net Interest Income & NIM 2.41% 2.40% 2.38% 1,25 0 2.3
Slide 10: Other Operating Income
Other Operating Income RM mil Composition Q1 Q1 2013 450 2014 6% 7% Service Charges, Commission, Guarantee & Commitment Fees ▲44% 43 143 (5%) (5%) Corporate Advisory, Underwriting & Arrangement Fees ▲6% 1 28 15% (21%) Net Brokerage ▼7% -6 85 7% 65% (8%) (61%) Fund Management & UT Fee ▼27% -14 36 Oth
Slide 11: Other Operating Expenses
Other Operating Expenses Composition RM mil 11% 11% 11% 9% Q1 2013 718 Q12014 20% 20% (10%) 58% (8%) 60% Personnel Cost ▲13% 56 475 Q1 2013 Q1 2014 Personnel Costs Establishment ▲11% 15 Cost 156 Establishment Costs Marketing Expenses Admin & Administration and General Expenses General ▲15% 12 90 Exp
Slide 12: Allowances for Loan Impairment
Allowances for Loan Impairment Increase/(Decrease) in Allowances for Loan Impairment RM mil -72 -9 -31 155 -5 ▼ 65% 16 54 Q1 2013 IA CA Recovered Written Others Q1 2014 Off Asset Quality Allowances for Loan Impairment & RM mil Credit Charge Ratio RM mil 2.99% 0.55% 0.49% 0.0 08 4,30 0 3.1 0% 4,10 0
Slide 13: Group Financial Position
Group Financial Position Change for Y-o-Y ♦ Expansion in total assets driven by loans Mar Dec Mar 3M 2014 Change growth and higher cash and short term RM mil 2014 2013 2013 % % funds Total Assets 196,944 191,090 184,556 3 7 ♦ Gross loans: Total Financial Assets/Investments 43,082 43,746 37,241 -2 16
Slide 14: Loans, Advances and Financing
Loans, Advances and Financing RM mil 1,196 500 64 14 -10 -33 -187 736 964 1,292 126,289 121,753 Dec 2013 Purchase of Purchase of Working Purchase of Merger and Purchase of Personal Use Credit Card Purchase of Others Mar 2014 Res. Property Securities Capital Non-Res. Acquisition Transport PPE Other P
Slide 15: Loans Profile and Market Share
Loans Profile and Market Share Gross Loans & Growth (%) Gross Loans by Interest/Profit 22% Rate Sensitivity 25% RM bil 300 16% 16% 14% 11% 20% 15% 11% 20% 13% 11% 250 9% 10% 10% 10% 14% 200 Fixed Rate 13% 10% 5% 8% 10% 8% 150 26% 0% -5% 100 -10% 97.4 111.5 121.8 126.3 Variable 83.9 50 -15% 69.6 Rate
Slide 16: Loans By Type of Customers
Loans By Type of Customers Composition Loans by Type of Customers 236 538 RM mil 5% 6% 7% 1,582 9% 9% 11% 11% 10% 2,180 7% 7% 27% 26% 29% 29% 30% 126,289 121,753 13% 12% 10% 10% 10% Dec 2013 Individuals Corporate International SME Mar 2014 44% 45% 45% 45% & Others 43% Mar 2014 57,274 44,899 11,448 1
Slide 17: Loans, Advances and Financing by SBG
Loans, Advances and Financing by SBG RM mil Composition Retail CIB Dec 2013 121,753 7% 13% (7%) +4% +4% (13%) Retail 2,042 45% (45%) Mar 2014: RM57,273 mil Mar 2014: RM44,176 mil Dec 2013: RM55,231 mil 35% Dec 2013: RM42,417 mil CIB 1,759 (35%) Retail GIB 411 GIB BBG Corporate Investment Banking ('C
Slide 18: Customer Deposits
Customer Deposits RM mil FD CASA Dec 2013 137,741 Fixed Deposits 3,901 +4% +5% Mar 2014: RM109,495 mil Mar 2014: RM33,734 mil Demand 1,252 Dec 2013: RM105,594 mil Dec 2013: RM32,105 mil Deposits Saving 377 142,894 Deposits CA SA NIDs 1 +5% +5% Mar 2014 143,272 ▲4.0% Mar 2014: RM25,824 (23%) mil Mar
Slide 19: Customer Deposits Profile & Market Share
Customer Deposits Profile & Market Share RM bil Customer Deposits RM bil FD & NID Maturity Structure 23% 88.1 108.8 105.1 105.9 106.0 105.6 109.5 350 19% 0.6 12% 23% 20% 1.0 0.7 0.6 0.4 0.4 300 19% 7% 18.2 18.3 17.0 15.0 12.2 20.7 11% 8% 6% 10% 1.5 250 14% -0.4% 14.8 8% 5% 200 7% 0% 150 -2% -10% 89.
Slide 20: Funding & Leverage
Funding & Leverage Funding Composition CASA Composition RM bil 1% 1% 1% 1% 1% 60.0 26.8% 29.5% 3% 2% 3% 3% 3% 24.0% 23.3% 23.5% 50.0 21.3% 24.5% 11% 11% 11% 12% 12% 40.0 19.5% 8% 7% 8% 9% 9% 30.0 14.5% 20.0 9.5% 29.4 32.1 33.7 10.0 25.4 27.8 4.5% - -0.5% 2010 2011 2012 2013 Mar 2014 CASA CASA Compos
Slide 21: 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 5.0 5.3 3.36 3.9 4.4 3.4 3.0 3.15 2.99 2.95 2.92 2011 2012 2013 Mar 2011 2012 2013 Mar 2.81 2.68 2.54 2014 2014 2.03 1.99 1.96 1.99 1.84 1.83 Purc
Slide 22: Capital Position (1/2)
Capital Position (1/2) Times RHB Capital N1 0.8 152% 149% 0.7 0.63 136% 134% 134% 0.6 0.54 130 % 0.5 0.39 0.37 0.4 0.36 0.3 0.2 80% Dec 2010 Dec 2011 Dec 2012 Dec 2013 Mar 2014 Gearing Double Leverage RHB Bank Group: Capital Development in Q1 2014 ▲0.1% 14.3% ▼0.4% ▼0.7% 13.3% 10.8% 10.3% 8.0% 10.3%
Slide 23: Capital Position (2/2)
Capital Position (2/2) RHB Bank RM bil 25. 0 14.0% Total capital ratio for RHB Bank decreased mainly due to 12.8% 15% 11.6% application of transitional arrangement with the gradual 20. 0 10.7% deduction/phase-out of investment in subsidiaries, sub- 11% 11.1% 10.2% 15. 0 7% debts and Hybrid Tier-1
Slide 24: Return to Shareholders
Return to Shareholders Market Capitalisation 8.72 8.43 10.00 7.48 7.69 7.90 8.00 5.30 6.00 4.00 19.2 20.1 21.5 18.8 16.5 11.4 2.00 0.0 0.00 2009 2010 2011 2012 2013 Mar 2014 Market Capitalisation (RM bil) Share Price (RM) Dividend Per Share Dividend Payout Ratio & DRP Rate 26.38% 25.41% 22.45% 22.09
Slide 25: Key Business Initiatives Update
Key Business Initiatives Update Contribution to Group and Growth Bank@ Work Secured PBT PBT Contribution Workforce Base Companies RM36.1 mil 5.8% -1.5% +20% +22% Q1 2014 +0.4% Q1 2014 Mar 2014: 2,001 Mar 2014: 138,655 Q1 2013: RM36.0 mil Q1 2013: 7.3% Dec 2013: 1,670 Dec 2013: 113,277 No. of CASA A/
Slide 26: Executive Summary: Q1 2014 Financial Results Summary
Executive Summary Q1 2014 Financial Results Summary
Slide 27: Summary
Summary Summary Launched IGNITE 2017, the 3rd phase of our transformation program, which focuses on growing the domestic and regional business and developing the RHB Banking Group into a leading multinational financial services group by 2020 Realigned and integrated all SBGs into combined groups bus
Slide 28: www.rhbgroup.com
www.rhbgroup.com INVESTOR RELATIONS CONTACT: Ms Yap Choi Foong Group Chief Financial Officer +(603) 9280 2489 cfyap@rhbgroup.com Ms Teh Soh Geok Vice President +(603) 9280 2154 teh.soh.geok@rhbgroup.com This material is prepared for general circulation. Any recommendation or view contained in this d
Slide 29: Key Business Highlights
Key Business Highlights
Slide 30: Retail Business Performance
Retail Business Performance Mortgage Personal Use 8.9% 8.9% 7.7% 7.4% 7.8% 7.3% 7.0% 7.0% 7.2% 6.7% 7.2 7.2 22.2 25.5 26.8 5.0 5.8 18.8 20.6 3.5 2010 2011 2012 2013 Mar 2014 2010 2011 2012 2013 Mar 2014 Mortgage Loans (RM bil) Market Share Personal Use (RM bil) Market Share Auto Finance Credit Card
Slide 31: CIB Market Share
CIB Market Share YTD Mar 2014 FY 2013 FY 2012** Market Share Ranking Market Share Ranking Market Share Ranking Debt Capital Market * 5.8% 4 16.3% 4 14.9% 4 Mergers & Acquisitions - by value 28.8% 2 11.8% 3 7.1% 11 - by deal count NA 1 NA 1 NA 1 Equities Capital Market ^ 5.5% 5 7.9% 3 2.6% 11 ** Comb
Slide 32: Equities, Futures & Asset Management
Equities, Futures & Asset Management Mar 2014 FY 2013 Total AUM RM bil Equities Market Market 11.0% Ranking Ranking 10.0% 10.0% (by value) Share Share 45.8 Malaysia 1.7% 2.6% 39.3 - By value 9.6% 2 8.8% 3 5.2 31.0 1.3 - By volume 13.7% 2 14.3% 1 0.6 22.4 Singapore 7.4% 6 7.4% 6 21.7 14.9 Hong Kong 0
Slide 33: 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 155 4 107 3 Revenue 2 48 1 Cost 148 104 2 2 Funding 44 Year 1 PTD Year 2 Cumulative Total 33
Slide 34: Business Banking and SME
Business Banking and SME RM bil Gross Loans RM bil Customer Deposits 30. 0% 30. 0 25. 0 14.6% 11.4% 20.1% 35. 0% 8.4% 15.1% 30. 0% 5.2% 10.6% 9.3% 9.3% 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 35: 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 135 .0% 130 .0% 125 .0% 5.7 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%