Rhb Bank Bhd. · MYX:RHBBANK
Rhb Bank Bhd — RHB Capital Berhad — Q3 2010 Earnings Presentation
27 slides from Rhb Bank Bhd's earnings presentation, Nov 29, 2010
Slide 1: RHB Capital Berhad 3rd Quarter 2010 Financial Results
RHB Capital Berhad 3rd Quarter 2010 Financial Results Dato’ Tajuddin Atan Group Managing Director RHB Banking Group 29 November 2010
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. 3rd Quarter 2010 Financial Results Review 3. To Sum Up 3 RHB Banking Group
Slide 4: Since We Last Spoke
Since We Last Spoke Corporate Completed acquisition of 15.2% in RHB Insurance from Nissay Dowa for RM44.5 million. Equity stake in Update RHB Insurance increased to 94.7%. Business Easy by RHB Expansion/ From 2 to 100 Easy Outlets in 10 months, on track to achieve target of 120 outlets by end
Slide 5: RHB Capital Group Financial Report Card
RHB Capital Group Financial Report Card Top level 9M 2010 vs. 9M 2009 indicators 9M 2009 12M 2009 9M 2010 Commentary Shareholders’ ROE Return (%) 14.2% 14.5% 15.1% Annualised ROE and ROA within targets ROA 1.1 % Asset Efficiency 1.1% 1.1% (%) Productivity 2.75% 2.79% 2.74% Interest margin not re
Slide 6: Agenda
Agenda 1. Since We Last Spoke 2. 3rd Quarter 2010 Financial Results Review 3. To Sum Up 6 RHB Banking Group
Slide 7: Key Financial Highlights - 3rd Quarter 2010
Key Financial Highlights - 3rd Quarter 2010 9M 2010 net profit of RM1,040.1 million, up 20% y-o-y 3rd Quarter net profit of RM351.4 million, up 4% q-o-q EPS at 48.3 sen, up 20% y-o-y Annualised ROE and ROA at 15.1% and 1.1% respectively Total assets expanded by 11% to RM127.1 billion Gro
Slide 8: Operating Performance Trend
Operating Performance Trend RM’mil 700 15.7% 15.1% 15.6% 15.3% 15.1% 14.1% 14.5% 600 14.2% 13.4% 1,538 11.6% 474 1,422 1,375 500 446 448 453 400 1,201 400 377 335 350 339 351 1,049 1,040 336 315 301 300 229 200 100 0 Q109 Q209 Q309 Q409 Q110 Q210 Q310 2008 2009 9M10 Profit before tax Net profit Annu
Slide 9: Summary of Income Statement
Summary of Income Statement Q-o-Q Y-o-Y Q3 Q2 9M 9M Change Change RM mil 2010 2010 2010 2009 % % Net Interest Income 714 607 18 1,958 1,779 10 Other Operating Income 252 265 -5 764 678 13 Income From Islamic Banking Business 86 79 9 249 241 3 Total Income 1,052 951 11 2,971 2,698 10 Other Operating
Slide 10: Analysis of Total Income
Analysis of Total Income Q-o-Q Y-o-Y Q3 Q2 9M 9M Change Change RM mil 2010 2010 2010 2009 % % Net Interest Income 714 607 18 1,958 1,779 10 Other Operating Income 252 265 -5 764 678 13 Income from Islamic Banking Business 86 79 9 249 241 3 Total Income 1,052 951 11 2,971 2,698 10 2.87% 2.82% 3% Tota
Slide 11: Other Operating Expenses
Other Operating Expenses Q-o-Q Y-o-Y Q3 Q2 9M 9M Change Change RM mil 2010 2010 2010 2009 % % Personnel costs 248 215 15 706 618 14 Establishment costs 89 88 1 267 227 18 Marketing expenses 42 39 8 110 112 -2 Admin & General expenses 44 45 -2 137 139 -1 Other Operating Expenses 423 387 9 1,220 1,096
Slide 12: Allowance for Impairment on Loans, Advances and Financing
Allowance for Impairment on Loans, Advances and Financing Q-o-Q Y-o-Y Q3 Q2 9M 9M Change Change 2010 2010 2010 2009 RM mil % % Individual assessment/Specific allowance 89 55 62 183 632 -71 Collective assessment/General allowance 120 103 17 314 (41) >100 Impaired loans and financing recovered (35) (6
Slide 13: Key Balance Sheet Items
Key Balance Sheet Items Q-o-Q Change for Sept June Dec Change 9M 2010 2010 2010 2009 % % RM mil Total Assets 127,116 120,192 114,951 6 11 Total Financial Assets/Investments 26,322 23,545 20,933 12 26 - Financial assets HFT 1,604 1,283 860 25 87 - Financial investments AFS 13,587 10,781 9,093 26 49 -
Slide 14: Loans, Advances and Financing
Loans, Advances and Financing Q-o-Q Change for Composition of Loan Book - Sept June Dec by Interest/Profit Rate Sensitivity Change 9M 2010 2010 2010 2009 % % RM mil Working capital 21,106 21,532 22,218 -2 -5 Purchase of residential property 17,962 17,230 16,002 4 12 Fixed Rate 31% Purchase of non-re
Slide 15: Loans, Advances and Financing - Approvals & Disbursements
Loans, Advances and Financing - Approvals & Disbursements Loans Approved Loans Disbursed RM billion RM billion 27% 21.7 14% 29.8 20 30 17.1 26.2 8.5 25 9.5 15 6.7 5.5 0.2 20 2.5 2.4 2.5 0.9 2.1 10 2.7 15 2.2 2.9 2.9 0.8 2.3 10 3.8 11.0 5 2.0 9.5 5 3.8 3.9 2.9 3.3 0 0 Sept 2009 Sept 2010 Sept 2009 Se
Slide 16: Asset Quality
Asset Quality Gross impaired loans ratio improved by 0.26% to 5.64% New impaired loans formation improved to 1.71% from from June 2010 2.01% a year ago RM million Net decrease of RM128 million 10000 8000 6.0 6.66 4.95 5.00 4.98 6.46 6000 3,002 -2,741 -389 4.67 5.90 5.64 4000 1,385 4.0 2000 4,638 4,5
Slide 17: Customers Deposits
Customers Deposits Customers Deposits Customers Deposits : Composition Change Q-o-Q Sept June Dec for 9M 100% Change 7% 6% RM mil 2010 2010 2009 2010 % % 90% Fixed Deposits 66,275 63,277 60,264 5 10 22% 21% 80% of which MMTD 24,392 22,927 21,043 6 16 70% Demand Deposits 19,156 19,016 18,597 1 3 60%
Slide 18: Business Performance - Retail (1/2)
Business Performance - Retail (1/2) RM’mil 7.9% 7.7% 7.3% 7.4% 7.6% 7.1% Improving market share 16,002 17,962 Compete with product 12,218 12,864 13,153 14,089 Mortgage differentiation 2005 2006 2007 2008 2009 Sept 10 Mortgage loans Market Share RM’mil 14.4% 7.0% 8.1% 9.3% 4.3% 5.6% 40% CAGR si
Slide 19: Business Performance - Retail (2/2)
Business Performance - Retail (2/2) RM’mil 8.4% 8.5% 9.3% 7.2% 6.0% 6.5% 2,674 2,105 2,248 1,630 Credit Card 995 1,288 2005 2006 2007 2008 2009 Sept 10 Receivables Market Share RM’mil Branches and expansion of SSTs support accumulation 7.0% 6.8% 6.6% 6.5% of CASA deposits (currently 38% of retail
Slide 20: Business Performance - CIB
Business Performance - CIB YTD Sept 2010 YTD June 2010 FYE Dec 2009 Market Share Rank Market Share Rank Market Share Rank Mergers & Acquisitions 55.3% 1st # 54.4% 1st # 9.0% 3rd Equities ^ 17.5% 3rd 22.4% 2nd 8.9% 3rd* Debt Capital Market** 12.1% 3rd 12.8% 3rd 13.2% 3rd Broking (by value) 6.6% 4th 6
Slide 21: Capital Position (1/2)
Capital Position (1/2) RHB Bank RHB Islamic Bank RM billion RM billion 15.7% 16% 16% 14.9% 14.0 1.5 14.6% 13.8% 14.0% 14.0% 13.8% 13.7% 14% 13.5% 13.6% 14% 13.5% 13.0% 13.0% 11.7% 13.2% 12.4% 12.5% 12.5% 12.7% 12.0 12.5% 12.1% 12.1% 12.2% 11.8% 12% 12% 10.8% 10.4% 10.5% 10.0 9.8% 9.3% 8.8% 10% 1.0 1
Slide 22: Capital Position (2/2)
Capital Position (2/2) RHB Investment RHB Investment Bank Bank RHB Capital RM billion Times 1.4 35% 0.6 154% 153% 152% 153% 32.0% 151% 31.3% 149% 149% N1 148% 0.55 0.55 1.2 29.8% 0.54 0.54 28.8% 30% 28.3% 0.52 27.3% 24.6% 0.5 0.48 1.0 23.0% 22.7% 25% 0.47 23.3% 22.9% 0.47 22.2% 22.2% 21.5% 130% 0.8
Slide 23: Analysis of Capital Adequacy - RHB Bank
Analysis of Capital Adequacy – RHB Bank Dec 2008 Dec 2009 June 2010 Sept 2010 Sept 2010 RM’ million (B.I) (B.I) (B.I) (B. I) (B. II) Tier I 5,318 6,879 7,459 7,309 7,309 Tier II (B.I)/Eligible Tier II (B. II) 2,996 2,863 3,911 3,941 2,413 Total Capital Base 7,685 9,115 10,745 10,625 9,722 % of Core
Slide 24: Market Capitalisation and Share Price
Market Capitalisation and Share Price Building value for the shareholders Market Capitalisation and Share Price Trend Dividend Trend – 2005 to 2010 RM mil RM 18,000 10 15,570 9 Final Interim 16,000 14,000 12,598 8 11,413 7 12,000 7.23 6 10.6% 17.45% 10,000 8,399 5.85 5.30 5 8,000 6,236 8.6% 4 6,000
Slide 25: Agenda
Agenda 1. Since We Last Spoke 2. 3rd Quarter 2010 Financial Results Review 3. To Sum Up 25 RHB Banking Group
Slide 26: To Sum Up
To Sum Up 1 9M 2010 results - With continued momentum in core revenue drivers. 2 Market share gained across targeted segments - To continue focus on building market share and position for growth opportunities in key markets / core businesses. 3 Strong deal pipeline, CIB is well poised to ride on con
Slide 27: End
End 27 RHB Banking Group