Rhb Bank Bhd. · MYX:RHBBANK
Rhb Bank Bhd — RHB Capital Berhad — H1 2011 Earnings Presentation
27 slides from Rhb Bank Bhd's earnings presentation, Aug 24, 2011
Slide 1: RHB Capital Berhad 1st Half 2011 Financial Results
RHB Capital Berhad 1st Half 2011 Financial Results Mr. Kellee Kam Managing Director RHB Capital Berhad 24 August 2011 STRICTLY PRIVATE & CONFIDENTIAL
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 1st Half 2011 Financial Results Review 3 To Sum Up 3 RHB Banking Group
Slide 4: Since We Last Spoke (1/2)
Since We Last Spoke (1/2) “Easy by RHB” o Outlets increased to 181 currently, on track to achieve target of 240 outlets by year end RHB Investment Management o Launched 2nd RHB-GS US Equity Fund, co-branded with Goldman Sachs for retail Domestic investors on 18 May 2011 Business o Launched RHB I
Slide 5: Since We Last Spoke (2/2)
Since We Last Spoke (2/2) RHB Bank obtained approvals from SC for the issuance of: o Up to USD500 million in nominal value (or its equivalent in other currencies) multi-currency Euro Medium Term Note Programme (“EMTN Programme”) on 9 May 2011; Capital o Up to RM3 billion in nominal value (or its e
Slide 6: RHB Capital Group Financial Report Card
RHB Capital Group Financial Report Card RHB Capital Group Scorecard 2011 Top level Target indicators FY 09 FY 10 2011 June 2011 ROE >15.2% 15.0% N1 14.5% 15.2% (%) ROA 1.2% N1 1.1% 1.2% >1.2% (%) Gross Impaired 6.7% 4.4% 4.0% 3.9% Loans Ratio (%) Loans Growth 10.2% 20.2% >15% 18.2% N1 (%) Deposits 1
Slide 7: Agenda
Agenda 1 Since We Last Spoke 2 1st Half 2011 Financial Results Review 3 To Sum Up 7 RHB Banking Group
Slide 8: Key Financial Highlights - 1st Half 2011
Key Financial Highlights - 1st Half 2011 H1 2011 net profit of RM777 million, up 13% y-o-y and 3% q-o-q EPS at 35.9 sen, up 12% y-o-y and 3% q-o-q Annualised ROE and ROA at 15.0% and 1.2% respectively Cost to Income ratio increased to 42.4% from 41.0% in H1 2010 Total assets increased by 8
Slide 9: Quarterly Profitability
Quarterly Profitability RM mil 15.6% 1400 15.3% 15.3% 15.1% 15.2% 15.1% 15.2% 15.0% 15.0% 1200 1,040 977 1000 922 777 800 731 689 600 524 528 512 474 448 453 380 382 395 400 350 339 351 200 0 Q110 Q210 Q310 Q410 Q111 Q211 H110 H210 H111 Profit Before Taxation Net Profit Annualised ROE 9 RHB Banking
Slide 10: Summary of Income Statement
Summary of Income Statement Q-o-Q Y-o-Y Q2 Q1 H1 H1 Change Change RM mil 2011 2011 2011 2010 % % Net Interest Income 702 681 3 1,383 1,229 13 Other Operating Income 316 267 18 583 512 14 Income From Islamic Banking Business 83 91 -9 174 160 9 Total Income 1,101 1,039 6 2,140 1,901 13 Other Operating
Slide 11: Analysis of Total Income
Analysis of Total Income Q-o-Q Y-o-Y Q2 Q1 H1 H1 Change Change RM mil 2011 2011 2011 2010 % % Net Interest Income 702 681 3 1,383 1,229 13 Other Operating Income 316 267 18 583 512 14 Income From Islamic Banking Business 83 91 -9 174 160 9 Total Income 1,101 1,039 6 2,140 1,901 13 2.82% 2.82% 3% Tot
Slide 12: Other Operating Expenses
Other Operating Expenses Q-o-Q Y-o-Y Q2 Q1 H1 H1 Change Change RM mil 2011 2011 2011 2010 % % Personnel Costs 279 298 -6 577 458 26 Establishment Costs 93 91 2 184 178 3 Marketing Expenses 27 27 - 54 50 8 Admin & General Expenses 60 33 82 93 93 - Other Operating Expenses 459 449 2 908 779 17 Cost to
Slide 13: Allowance for Impairment on Loans, Financing and Other Losses
Allowance for Impairment on Loans, Financing and Other Losses Q-o-Q Y-o-Y Q2 Q1 H1 H1 Change Change 2011 2011 2011 2010 RM mil % % Individual Impairment Allowance 50 (7) >-100 43 94 -54 Collective Impairment Allowance 120 165 -27 285 193 48 Impaired Loans and Financing Recovered (48) (79) -39 (127)
Slide 14: Key Balance Sheet Items
Key Balance Sheet Items Change for H1 Y-o-Y June Dec June 2011 Change 2011 2010 2010 % % RM mil Total Assets 140,665 129,325 120,192 9 17 Total Financial Assets/Investments 27,214 25,017 23,545 9 16 - Financial Assets HFT 1,546 772 1,283 >100 20 - Financial Investments AFS 12,224 13,375 10,781 -9 13
Slide 15: Loans, Advances and Financing
Loans, Advances and Financing Change Composition of Loan Book - Y-o-Y June Dec June for H1 Change by Interest/Profit Rate Sensitivity RM mil 2011 2010 2010 2011 % % Working Capital 21,319 20,694 21,532 3 -1 Purchase of Residential Property 19,866 18,841 17,230 5 15 Fixed Rate Purchase of Non-Residen
Slide 16: Asset Quality
Asset Quality New Impaired Loans Formation Improved to 0.84% from Gross Impaired Loans Ratio Improved by 0.49% to 3.90% 1.03% a year ago RM mil % Net decrease of RM107 mil 6,000 6.0 6.66 6.46 4.95 5.00 4.98 -1,593 4.67 5.90 5.64 1,734 -248 4,000 4.0 4.39 4.12 3.90 2,000 3.96 3.88 3.84 3.62 3.48 3,67
Slide 17: Customers Deposits
Customers Deposits Customers Deposits Customers Deposits : Composition Change Y-o-Y June Dec June for H1 100% Change RM mil 2011 2010 2010 2011 6% 6% % % 90% Fixed Deposits 76,814 68,830 63,277 12 21 21% 19% 80% of which MMTD 26,056 24,505 22,927 6 14 70% Demand Deposits 19,850 19,523 19,016 2 4 60%
Slide 18: Loans and Deposits
Loans and Deposits Loans Customers Deposits RM bil RM bil 200 20% 25% 250 50% 18% 32% 13% 15% 200 18% 30% 10% 10% 15% 12% 15% 11% 150 9% 15% 11% 13% 10% 5% 150 17% 12% 8% 9% 7% 6% 91.3 7% 100 83.7 -2% 102.9 -10% 1% 94.4 63.2 69.6 -5% 100 84.8 56.1 56.8 75.8 74.0 57.5 -30% 50 -15% 50 -50% 0 -25% 0 -7
Slide 19: Retail Business Performance
Retail Business Performance RM mil RM mil 7.7% 7.4% 7.7% 7.6% 6.5% 6.9% 6.6% 6.7% 6.9% 7.3% 7.1% 5.7% 4,152 18,841 19,866 3,535 14,089 16,002 2,385 2,601 2,749 12,864 13,153 Personal 2,004 Mortgage Use 2006 2007 2008 2009 2010 June 2011 2006 2007 2008 2009 2010 June 2011 Mortgage Loans Market Share
Slide 20: Easy Performance
Easy Performance 170 16 SGAM Best Process Effies 2010 Silver Award 111 30 Innovation Award 7 39 Number of 19 Award Outlets Winning 32 Innovation The Asian Banker Award IDC Financial Insight Award 85 53 2 14 July 2009 Dec 2009 Dec 2010 June 2011 The BrandLaureate Banking & Payment Asia Awards 2010-20
Slide 21: Domestic Market Share - CIB
Domestic Market Share - CIB YTD June 2011 YTD March 2011 FY 2010 YTD June 2010 Market Market Market Market Rank Rank Rank Rank Share Share Share Share Mergers & Acquisitions # 30.1% 1st 4.8% 4th 58.8% 1st 54.4% 1st Equities ^* 5.5% 4th 3.6% 4th 7.7% 3rd 22.4% 2nd Debt Capital Market** 8.6% 5th 10.8%
Slide 22: Capital Position (1/2)
Capital Position (1/2) RHB Bank RHB Islamic Bank RM bil RM bil 17% 16% 15.7% 1.5 14.6% 14.0 14.9% 13.8% 14.0% 13.5% 13.6% 14% 13.2% 13.0% 12.7% 12.0 11.7% 13% 11.8% 12.7% 12% 12.1% 12.2% 11.8% 10.0 11.4% 10.5% 10.8% 10.8% 10.5% 1.0 10.5% 10% 9.9% 8.4 9% 0.9 0.9 0.9 0.9 0.9 0.9 8.8% 7.9 7.9 8.0 7.5 7
Slide 23: Capital Position (2/2)
Capital Position (2/2) RHB Investment Bank RHB Capital RM bil Times 1.4 36% 33.9% 0.7 154% 153% 153% 152% 152% 29.5% 31% 146% 1.2 28.3% 27.3% 25.2% 0.6 26% 1.0 22.7% 27.7% 0.55 0.56 0.56 0.54 0.55 24.1% 22.9% 21% 0.51 130% 22.2% 21.4% 0.5 0.8 17.9% 16% 0.6 0.6 0.5 0.4 0.5 11% 0.4 0.4 0.4 0.4 6% 0.2
Slide 24: Return to Shareholders
Return to Shareholders Building value for the shareholders Market Capitalisation and Share Price Trend Dividend Trend - 2005 to 2011 RM mil RM 25,000 20,078 10 18,778 21.38% 9 20,000 8 17.45% 12,598 9.16 7 10.6% 11,413 8.72 15,000 6 8,399 5 6,236 5.85 8.6% 10,000 5.30 4 4,267 4,030 3.90 3 9.0% 5,000
Slide 25: Agenda
Agenda 1 Since We Last Spoke 2 1st Half 2011 Financial Results Review 3 To Sum Up 25 RHB Banking Group
Slide 26: To Sum Up
To Sum Up 1 Satisfactory H1 2011 results - strong business fundamentals and growth momentum across all core areas with increased revenue, loans, deposits and improving asset quality; 2 Loans and deposits growth continue to outperform industry; 3 The Group continues to benefit from a disciplined exec
Slide 27: End
End STRICTLY PRIVATE & CONFIDENTIAL