Rhb Bank Bhd. · MYX:RHBBANK
Rhb Bank Bhd — Shareholder Meeting (April 2022)
27 slides from Rhb Bank Bhd's shareholder meeting presentation, Apr 27, 2022
Slide 1: RHB Bank Berhad 56th Annual General Meeting
RHB BANK BERHAD 56th ANNUAL GENERAL MEETING Mohd Rashid Mohamad 27th April 2022
Slide 2: Agenda
1. Key Highlights 2. FY2021 Performance Review 3. Strategy Update 4. Sustainability Update 5. CSR Initiatives Update 6. Dividend Reinvestment Plan (DRP) 7. Concluding Remarks
Slide 3: Key Highlights
Key Highlights
Slide 4: Highlights of FY2021
Highlights of FY2021 4 RHB achieved a net profit of RM2.62 billion, grew ROE at 9.6% 28.8% Y-o-Y which enabled the Bank to create value for its stakeholders Maintained sound fundamentals with strong capital and liquidity levels; asset quality on an improving trend with lower GIL and credit charge ra
Slide 5: FY2021 Performance Review
FY2021 Performance Review
Slide 6: FY2021 Performance Review
FY2021 Performance Review 6 RHB delivered a resilient FY2021 performance supported by higher net fund based income and lower ML and ECL 1 Improvement on Income Total Income Net Fund Based Income Non-Fund Based Income Modification Loss (ML) (RM bil) (RM bil) (RM bil) (RM bil) +8.4% +11.5% -7.6% -41.4
Slide 7: Net Fund-based Income
Higher net fund based income was supported by proactive funding cost management; 7 NIM strengthened by 8 bps to 2.14% in FY2021 3 Net Fund-based Income RM’ bil Y-o-Y: +11.5% 10.16 9.59 5.87 5.27 (3.72) (4.89) FY2020 FY2021 Fund Based Income Fund Based Expenses Net Fund Based Income NIM : 2.06% 2.14%
Slide 8: Non Fund-based Income
Overall non-fund based income dipped 7.6% mainly due to lower net trading and investment income; 8 However, customers fee related income grew 3.7% Y-o-Y 4 Non Fund-based Income +3.7% growth in customers fee related income* Y-o-Y -7.6% 8.1% -31.0% 8.8% -16.4% +8.1% growth in Total Fee Income Y-o-Y %
Slide 9: Cost Management
RHB continued to manage cost tightly and maintained positive JAWS; 9 CIR further improved to 45.2% 5 Cost Management Y-o-Y: 4.0% RM’ mil 3,387 3,522 Admin & General Expenses 371 3.9% 357 Marketing Expenses 241 0.4% 240 Establishment Cost 773 3.5% 747 Personnel cost 2,042 2,138 4.7% FY2020 FY2021 Cos
Slide 10: Growth in Gross Loans
Group loans up 6.7% Y-o-Y led by mortgage, auto finance, SME, Commercial and Singapore; 10 Portfolio rebalancing improved with higher Retail & SME composition: 59% (FY2017) vs 63% (FY2021) 6 Growth in Gross Loans 6.7% growth in Total Gross Loans Y-o-Y of which: Y-o-Y RM174.1 bil 6.7% 6.2% 1.6% 22.0%
Slide 11: Growth in Deposits & Steady CASA Ratio
Total deposits grew by 7.5% Y-o-Y led by FD and CASA growth of 8.8% and 4.5% respectively; 11 CASA ratio remained healthy at 30.0% 8 Growth in Deposits & Steady CASA Ratio Customer Deposits CASA Ratio Deposits by Type Y-o-Y FY2020 FY2021 (RM’bil) % 30.2% 30.9% 30.0% 35. 0% Fixed DepositsN1 140.7 153
Slide 12: Improved Credit Cost & GIL
Credit cost improved to 0.29% from lower ECL on loans and higher bad debts recovered; 12 GIL strengthened further to 1.49% while LLC remained well above 100% 9 Improved Credit Cost & GIL Gross Impaired Loans 93.3% 85.7% 119.7% 122.4% 150 .0% 51.2% 100 .0% 50. 0% 0.0 % -50.0% 2.23% -100.0% 2.06% 1.97
Slide 13: Improved Fundamentals
Our fundamentals have improved steadily, albeit impact of COVID-19 on profitability 13 10 Improved Fundamentals Return on Equity Cost-to-Income Ratio 10.3% 10.3% 49.9% 9.6% 49.3% 9.1% 48.0% 7.7% 47.1% 45.2% 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 N1 Loan Loss Coverage Group Capital Ratios
Slide 14: Dividend Per Share (sen)
FY2021 total dividend of 40 sen per share represents 62.9% payout, our highest ever payout 14 The Board has proposed a final cash dividend of 25 sen per share with 15 sen cash and 10 sen subject to DRP. Together with the interim dividend paid, total dividend of 40 sen per share represents 62.9% pa
Slide 15: Strategy Update
Strategy Update
Slide 16: FIT22 Key Highlights – Continued to Progress
FIT22 Key Highlights – Continued to Progress 16 Grow Affluent, leveraging on SME customer base Continue to win in the SME space AUM of Premier customers +7.6% to RM42.9 bil SME loans +11.2% to RM24.5 bil, RSME +12.4% Affluent fee income +34.0% to RM211.4 mil SME e-Solutions enhanced through
Slide 17: Sustainability Update
Sustainability Update
Slide 18: Sustainability Key Achievements
Sustainability Key Achievements 18 • RM5 bil Green Financing Commitment by 2025: • RM4.32 bil extended as at Dec-21, of which 20.7% is for renewable energy projects • Launched Sustainable Financing Programme for SMEs and Retail customers • A product bundle comprising Green Energy, Green Buildings, G
Slide 19: CSR Initiatives Update
CSR Initiatives Update
Slide 20: CSR and Humanitarian Initiatives (1/3)
CSR and Humanitarian Initiatives (1/3) 20 Community engagement initiatives for those impacted by COVID-19 and the flood RHB’S COVID-19 RHB’S COVID-19 RHB Emergency and RHB Emergency and Relief Fund Relief Fund Disaster Relief Disaster Relief Contributed almost RM8.4 Provision of medical equipment Co
Slide 21: CSR and Humanitarian Initiatives (2/3)
CSR and Humanitarian Initiatives (2/3) 21 Nurturing the future generations through various academic excellence programmes for the youth Championed financial Financial education series, Motivational Talk on Organised the SPM literacy through the Money which recorded more than tertiary education Readi
Slide 22: CSR and Humanitarian Initiatives (3/3)
CSR and Humanitarian Initiatives (3/3) 22 Other notable community enrichment programmes: RHB X-Cel Academic Excellence programme has benefited more than 4,000 underprivileged students from the B40 income segment across 40 schools since 2018 Contributed RM5 million for the CERDIK programme, where
Slide 23: Dividend Reinvestment Plan (DRP)
Dividend Reinvestment Plan (DRP)
Slide 24: Sequence of Events for the Dividend Reinvestment Plan
Sequence of Events for the Dividend Reinvestment Plan (“DRP”) 24 Proposed a final dividend of 25 sen per share, consisting of cash payout of 15 sen per share and an electable portion under the DRP of 10 sen per share. The timeline for the DRP is as follows: Date Key events 27 Apr 2022 56th Annual Ge
Slide 25: Concluding Remarks
Concluding Remarks
Slide 26: Concluding Remarks
Concluding Remarks 26 The Group exhibited resilience as it navigated through challenges amid continued uncertainty in the operating environment Notwithstanding the expectation of economic recovery, the Group will remain prudent and continue to monitor market development closely Focus remains o
Slide 27: Thank You
THANK YOU www.rhbgroup.com 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