Rhb Bank Bhd. · MYX:RHBBANK
Rhb Bank Bhd — Q3 2014 Earnings Presentation
39 slides from Rhb Bank Bhd's earnings presentation, Nov 20, 2014
Slide 1: RHB Banking Group Q3 2014 Analyst Presentation
Mr. Kellee Kam Group Managing Director RHB Banking Group 20 November 2014
Slide 2: Executive Summary
Executive Summary Q3 2014 Financial Results Key Corporate and Business Updates Summary
Slide 3: Executive Summary: Q3 2014 Financial Performance Highlights
Executive Summary Q3 2014 Financial Performance Highlights Healthy revenue growth, nine months ended 30 September 2014 up 5.2% year-on-year driven by 1 higher other operating income Pre-provisioning profit up 24.4% quarter-on-quarter and 1.6% year-on-year to RM806.2 million 2 and RM2.13 billion re
Slide 4: RHB Banking Group Scorecard 2014
RHB Banking Group Scorecard 2014 Top Level Indicators Target 2014 Sept 2014 ROE >12.0% 11.8%N1 Loans Growth 12% 11.7%N2 CASA Growth >15% 4.1%N2 Gross Impaired <2.5% 2.29% Loans Ratio Cost to Income Ratio <50% 53.2% International Contribution >12% 11.0% N1 Annualised N2 Changes for 9M Sept 2014, not
Slide 5: Q3 2014 Financial Results
Executive Summary Q3 2014 Financial Results Key Corporate and Business Updates Summary
Slide 6: Financial Results
Financial Results Year-on-Year Performance: Q-o-Q Y-o-Y Q3 Q2 9M 9M ♦ Net interest income increased on the back of 10% Change Change RM mil 2014 2014 2014 2013 increase in conventional gross loans. % % ♦ Non interest income increased by 3%, primarily Net Interest Income 836 828 1 2,486 2,409 3 attri
Slide 7: Income Mix & NIM
Income Mix & NIM Income Mix 33% 34% 36% 37% 34% 30% 37% 34% 34% 10% 10% 10% 10% 13% 10% 12% 10% 12% 57% 56% 54% 53% 56% 57% 51% 56% 54% Q113 Q213 Q313 Q413 Q114 Q214 Q314 9M 2013 9M 2014 Net Interest Income Islamic Banking Income Other Operating Income Net Interest Income & NIM 1,25 0 2.34% 2.33% 2.
Slide 8: Other Operating Income
Other Operating Income Composition RM mil 9M 2013 1,494 9M 2014 5% Service Charges, Commission, 7% (6%) Guarantee & Commitment Fees ▲23% 75 406 (5%) 14% Corporate Advisory, Underwriting & Arrangement Fees ▲24% 25 127 (16%) Fund Management 9% & UT Fee ▼15 % -21 117 (12%) 65% (61%) Net Brokerage ▼8% -
Slide 9: Other Operating Expenses
Other Operating Expenses Composition RM mil 12% 11% 11% 9% 9M 2013 2,231 9M 2014 20% 20% 57% 60% Personnel Cost ▲13% 167 1,451 Sept 2013 Sept 2014 Personnel Costs Establishment ▲9% 42 Cost 490 Establishment Costs Marketing Expenses Admin & Administration and General Expenses General ▼1% -2 258 Expen
Slide 10: Allowances for Loan Impairment
Allowances for Loan Impairment Increase/(Decrease) in Allowances for Loan Impairment RM mil -217 3 ▼50% 103 329 -47 -5 166 Sept 2013 IA Written Recovered CA Others Sept 2014 Off Asset Quality Allowances for Loan Impairment & Credit Charge Ratio RM mil RM mil 0.55% 400 0.49% 0.39% 0.28% 0.36% 2.99% 0
Slide 11: Financial Position as at 30 September 2014
Financial Position as at 30 September 2014 Change for Y-o-Y For the first nine months of 2014: Sept Dec Sept 9M 2014 Change RM mil 2014 2013 2013 i. Total assets expanded by 10% to RM209.5 % % billion mainly driven by loans and funding Total Assets 209,454 191,090 187,668 10 12 growth. Total Finan
Slide 12: Loans, Advances and Financing
Loans, Advances and Financing RM mil 300 83 39 101 269 790 2,095 2,822 3,654 136,009 4,181 121,753 Dec 2013 Purchase of Working Purchase of Purchase of Purchase of Purchase of Personal Use Merger and Credit Card Others Sept 2014 Res. Property Capital Securities Non-Res. Transport PPE Other Acquisiti
Slide 13: Loans Profile and Market Share
Loans Profile and Market Share Gross Loans Gross Loans by Interest/Profit RM bil Rate Sensitivity 25% 22% 16% 14% 300 20% 20% 16% 11% 13% 12% 250 15% 9% Fixed Rate 10% 13% 10% 200 24% 14% 5% 10% 8% 9% 150 0% -5% 100 -10% 121.8 136.0 Variable 83.9 97.4 111.5 50 -15% Rate -20% 0 76% 2010 2011 2012 201
Slide 14: Loans By Type of Customers
Loans By Type of Customers Composition Loans by Type of Customers RM mil 1,742 2,320 7% 5% 11% 11% 10% 2,935 9% 10% 5% 6% 7% 7,259 27% 26% 29% 28% 136,009 30% 13% 12% 10% 11% 10% 121,753 Dec 2013 Individuals International SME Corporate Sept 2014 & Others 44% 45% 43% 45% 46% Sept 2014 62,352 13,845 1
Slide 15: Customer Deposits
Customer Deposits RM mil FD CASA Dec 2013 137,741 Fixed Deposits 9,067 +9% +4% Sept 2014: RM114,662 mil Sept 2014: RM33,409 mil Demand 951 Dec 2013: RM105,595 mil Dec 2013: RM32,105 mil Deposits Saving 354 Deposits CA SA NIDs -5 +4% +5% Sept 2014 148,108 ▲8% Sept 2014: RM25,523 (23%) mil Sept 2014:
Slide 16: Customer Deposits Profile & Market Share
Customer Deposits Profile & Market Share RM bil Customer Deposits RM bil FD & NID Maturity Structure 23% 350 23% 19% 20% 114.7 114.7 108.8 105.6 109.5 19% 300 8% 8% 88.1 0.6 0.7 1.8 10% 1.0 0.4 250 14% 7% 18.2 12.2 15.8 12.7 -0.4% 1.5 20.7 8% 6% 14.8 200 0% 150 -2% -10% 100 89.6 93.0 88.2 98.2 100.2
Slide 17: Funding & Leverage
Funding & Leverage Funding Composition CASA Composition 1% 1% 1% 1% RM bil 2% 3% 3% 2% 11% 11% 12% 12% 7% 60.0 29.5% 8% 9% 11% 24.0% 23.5% 23.3% 23.3% 22.6% 50.0 24.5% 21.3% 40.0 19.5% 79% 77% 75% 74% 30.0 14.5% 20.0 9.5% 33.7 34.9 33.4 32.1 27.8 29.4 10.0 4.5% 2011 2012 2013 Sept 2014 Customer Depo
Slide 18: PBT by SBG
PBT by SBG RM mil Composition CIB BBG 9M 2013 1,787 3% +89% +20% 17% (3%) CIB 424 (18%) 9M 2014: RM903 mil 9M 2014: RM331 mil 9M 2013: RM479 mil 9M 2013: RM275 mil 38% 14% (25%) BBG 56 (14%) GIB TSY TSY 53 28% +53% +16% (40%) GIB 27 9M 2014: RM79 mil 9M 2014: RM391 mil 9M 2013: RM51 mil 9M 2013: RM3
Slide 19: Loans, Advances and Financing by SBG
Loans, Advances and Financing by SBG RM mil Retail CIB Composition Dec 121,753 8% 2013 (7%) 13% +13% +7% (13%) Retail 7,041 46% (45%) Sept 2014: RM62,272 mil Sept 2014: RM45,936 mil 33% CIB Dec 2013: RM55,231 mil Dec 2013: RM43,004 mil 2,932 (35%) GIB 2,661 GIB BBG Retail BBG Corporate Investment Ba
Slide 20: Deposits by SBG
Deposits by SBG RM mil TSY CIB Composition Dec 137,741 2013 +15% +3% 8% (7%) Sept 2014: RM41,278 mil Sept 2014: RM36,113 mil 26% TSY 5,263 Dec 2013: RM36,015 mil Dec 2013: RM35,224 mil (27%) 28% (26%) Retail 2,271 Retail GIB 25% 13% (26%) GIB 1,711 +6% +17% (14%) Sept 2014: RM38,835 mil Sept 2014: R
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 5.3 3.36 3.9 4.1 4.4 3.4 2.7 2.99 2011 2012 2013 Sept 2011 2012 2013 Sept 2.81 2.68 2.54 2014 2014 2.45 2.29 2.03 1.84 1.83 1.77 1.77 Purchase of
Slide 22: RHB Capital: Capital Position & Market Capitalisation
RHB Capital : Capital Position & Market Capitalisation N1 Leverage Ratio Gearing and Double Leverage N2 Multiple (times) Times 13.0 13.1 0.8 152% 149% 12.5 0.7 0.63 136% 134% 137% 0.6 0.54 130 % 11.4 11.4 0.5 0.39 0.39 0.4 0.36 0.3 0.2 80% 2010 2011 2012 2013 Sept 2014 Dec 2010 Dec 2011 Dec 2012 Dec
Slide 23: Capital Position (1/2)
Capital Position (1/2) RHB Bank Group: Capital Development in 9M 2014 ▲0.6% ▲0.8% ▼0.3% ▼0.8% 14.3% 14.6% 10.8% 10.5% 14.6% 8.0% 10.3% 10.1% 5.5% 4.0% Dec 2013 Increase Issuance of Effect of Increase in Sept 2014 2014 Requirements in CET1 New Sub-Debts Transitional Business Treatment Volume CET 1 Ti
Slide 24: Capital Position (2/2)
Capital Position (2/2) RM bil RHB Islamic Bank RHB Investment Bank 18% RM bil 15.6% 2.5 35% 6.5 14.4% 2.3 16% 2.1 30.9% 30% 5.5 14% 1.9 24.6% 25% 4.5 13.9% 12% 1.7 1.5 12.2% 10% 1.1 1.1 20% 1.0 1.0 1.3 3.5 2.7 1.1 2.1 8% 15% 2.5 2.0 2.1 0.9 6% 0.7 10% 1.5 0.5 4% 0.3 5% 0.5 2% 0.1 -0.1 0% -0.5 Dec 20
Slide 25: Key Corporate and Business Updates
Executive Summary Q3 2014 Financial Results Key Corporate and Business Updates Summary
Slide 26: Key Business Initiatives Update
Key Business Initiatives Update Contribution to Group and Growth Bank@ Work Secured PBT PBT Contribution Workforce Base Companies -15.4% RM90.8 mil -5.2% 4.3% -35.6% -1.1% 9M 2014 +0.4% 9M 2014 +60% +55% Sept 2014: 2,560 Sept 2014:175,142 9M 2013: RM95.8 mil 9M 2013: 5.4% Dec 2013: 1,596 Dec 2013: 1
Slide 27: Corporate Exercise
Corporate Exercise A. Proposal to Commence Negotiation for a B. Rationale for the Merger Merger of Business and Undertakings 1. Market Leadership Leadership across almost all commercial and RHB Capital and CIMB Group, made a joint application to investment banking business segments in Malaysia BNM
Slide 28: 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 218 6 10 107 111 Revenue 2 4 1 9 202 Cost 104 98 Funding Year 1 PTD Year 2 Cumulative Total 28
Slide 29: IGNITE 2017
IGNITE 2017 2015 Launch Differentiated and 2014 Regional Capabilities Strengthen Value Propositions and Core Capabilities Transform branch sales and service - roll-out sales tools, redesign branch model, enhance customer experience Drive significant growth in Singapore Scale Islamic Banking gr
Slide 30: Summary
Executive Summary Q3 2014 Financial Results Key Corporate and Business Updates Summary
Slide 31: Summary
Summary Summary IGNITE 2017 transformation program progressing well and is showing strong momentum partly reflected in the 9M performance and will set the foundation for future growth. Progress on IGNITE initiatives have been encouraging. 9M 2014 financial performance was broadly in line with the Gr
Slide 32: Investor Relations Contact
www.rhbgroup.com INVESTOR RELATIONS CONTACT: Ms Yap Choi Foong Group Chief Financial Officer +(603) 9280 2489 cfyap@rhbgroup.com Mr Khairul Rifaie Head, Investor Relations / Chief Financial Officer, RHB Bank Berhad +(603) 9280 5711 khairul.rifaie@rhbgroup.com This material is prepared for general ci
Slide 33: Key Business Highlights
Appendix Key Business Highlights
Slide 34: Retail Business Performance
Retail Business Performance Mortgage Personal Use 7.7% 7.3% 7.5% 7.0% 7.0% 8.9% 9.0% 7.4% 7.8% 6.7% 25.5 29.7 18.8 20.6 22.2 7.2 7.5 5.0 5.8 3.5 2010 2011 2012 2013 Sept 2014 2010 2011 2012 2013 Sept 2014 Mortgage Loans (RM bil) Market Share Personal Use (RM bil) Market Share Auto Finance Credit Car
Slide 35: CIB Market Share
CIB Market Share 9M 2014 FY 2013 FY 2012** Market Share Ranking Market Share Ranking Market Share Ranking Debt Capital Market * 12.4% 4 16.3% 4 14.9% 4 Mergers & Acquisitions - by value 19.6% 3 11.8% 3 7.1% 11 - by deal count NA 1 NA 1 NA 1 Equities Capital Market ^ 7.8% 4 7.9% 3 2.6% 11 ** Combined
Slide 36: Equities, Futures & Asset Management
Equities, Futures & Asset Management 9M 2014 FY 2013 Total AUM RM bil 11.6% Equities Market Market 10.0% 10.0% Ranking Ranking (by value) Share Share 47.4 Malaysia 2.6% 1.7% 39.3 5.7 - By value 9.7% 2 8.8% 3 1.3 31.0 - By volume 13.6% 2 14.3% 1 0.6 22.0 Singapore 5.0% 10 7.4% 6 21.7 14.9 Hong Kong 0
Slide 37: Business Banking and SME
Business Banking and SME RM bil Gross Loans RM bil Customer Deposits 30. 0% 30. 0 14.1% 20.1% 35. 0% 12.3% 25. 0 8.8% 30. 0% 5.2% 10.6% 9.3% 9.3% 10.8% 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 38: RHB Bank Singapore Business Performance
RHB Bank Singapore Business Performance 50 PBT 160 .0% Loans, Deposits & Total Assets 6.6 SGD mil 155 .0% 45 150 .0% 145 .0% 140 .0% SGD bil 135 .0% 130 .0% 125 .0% 40 120 .0% 115 .0% 110 .0% 5.2 105 .0% 35 100 .0% 95. 0% 90. 0% 85. 0% 4.4 4.2 30 80. 0% 75. 0% 70. 0% 3.4 3.6 3.5 25 65. 0% 60. 0% 55.
Slide 39: Significant progress on IGNITE 2017 since February 2014 launch
We have made significant progress on IGNITE 2017 since its launch in February 2014 39