Rhb Bank Bhd. · MYX:RHBBANK
Rhb Bank Bhd — Shareholder Meeting (May 2021)
32 slides from Rhb Bank Bhd's shareholder meeting presentation, May 25, 2021
Slide 1: RHB Bank Berhad 55th Annual General Meeting
RHB BANK BERHAD 55th ANNUAL GENERAL MEETING Khairussaleh Ramli 25th May 2021
Slide 2: Key Highlights FY2020 Performance Review Strategy Update
1. Key Highlights 2. FY2020 Performance Review 3. Strategy Update 4. Sustainability Update 5. Repayment Assistance Update 6. Dividend Reinvestment Plan (DRP) 7. Concluding Remarks
Slide 3: Key Highlights
Key Highlights
Slide 4: Highlights of FY2020 (1/2)
Highlights of FY2020 (1/2) Achieved net profit of RM2.03 billion, 18.1% Y-o-Y decline mainly due to net modification loss (ML) arising from moratorium accorded to our customers and higher provisions including pre-emptive ones for COVID-19 impact ROE at 7.7%; 8.3% if normalised for net ML Funda
Slide 5: Highlights of FY2020 (2/2)
Highlights of FY2020 (2/2) Re-prioritized FIT22 strategy in response to the pandemic: i. accelerate digitalisation of customer journeys and IT modernisation plan ii. transform credit risk management : boost turnaround time, improve credit quality, utilise analytics to enhance growth iii. upskill o
Slide 6: Other Key Highlights in FY2020
Other Key Highlights in FY2020 Improved Employee Engagement Survey (EES) score increased to 92% from 90% in 2019, Employee surpassing Malaysia Financial Institutions’ score of 89% (2019: 89%) Engagement Enhanced customer Higher Net Promoter Scores (NPS) at +11 in 2020 from +9 in 2019 satisfaction Pu
Slide 7: FY2020 Performance Review
FY2020 Performance Review
Slide 8: Profit impacted mainly by higher ECL and net ML despite income growth
FY2020 Performance Review Profit impacted mainly by higher ECL and net ML despite income growth; Higher ECL arising from pre-emptive provisions for potential COVID-19 effects Total Net Fund Based Non-Fund Based Net Modification Income Income Income Loss +1.8% +6.3% +11.2% N/A N1 FY2020: RM7.19 bil F
Slide 9: Higher net fund based income supported by funding cost management
FY2020 Performance Review Higher net fund based income was supported by proactive funding cost management; NIM dropped to 2.06% from the impact of 125bps OPR cuts RM’ bil Y-o-Y: +6.3% 11.38 10.16 6.43 4.96 4.89 5.27 FY2019 FY2020 Fund Based Income Fund Based Expenses Net Fund Based Income NIM 2.12%
Slide 10: Non-fund based income grew 11.2% Y-o-Y
FY2020 Performance Review Non-fund based income grew 11.2% Y-o-Y mainly due to higher investment and trading income, insurance underwriting surplus, brokerage income and wealth management fees Y-o-Y Non-Fund Based Income RM’mil FY2019 FY2020 Change Total Fee Income (A) 1,032 1,153 +11.7% 30% 31% of
Slide 11: Operating expenses relatively flat; CIR improved to 47.1%
FY2020 Performance Review Operating expenses relatively flat on the back of disciplined cost management; CIR further improved to 47.1% Y-o-Y: unchanged RM’ mil 3,387 3,387 Administration & 366 357 2.4% General Expenses 251 240 4.1% Marketing Expenses 757 747 1.3% Establishment Costs Personnel Costs
Slide 12: Group loans grew 5.6% Y-o-Y
FY2020 Performance Review Group loans grew 5.6% Y-o-Y led by mortgage, auto finance, SME and Singapore; Further progress achieved in portfolio rebalancing with higher Retail & SME composition (from 58% in FY2015 to 66% in FY2020) Gross Loans % Composition FY2019 FY2020 (RM' bil) Change FY2015 FY2019
Slide 13: Total deposits grew 6.8% led by CASA growth
FY2020 Performance Review Total deposits grew by 6.8% Y-o-Y led by CASA growth of 28.3%; CASA ratio improved to 30.9%; LCR healthy at 146.9% Deposits by Type FY2019 FY2020 % Change (RM’bil) Fixed DepositsN1 141.6 140.7 -0.7% CASA 48.9 62.8 +28.3% Current Deposits 38.4 49.5 +29.0% Savings Deposits 10
Slide 14: Higher credit charge ratio; GIL ratio under control
FY2020 Performance Review Higher credit charge ratio due to provisions set aside for potential COVID-19 impact. GIL ratio under control, helped by R&R dispensation. LLC well above 100%, a first for the Group RHB Bank 119.7% 150.0% 93.3% 85.7% 56.9% 51.2% 100.0% 50.0% 4.50 4.40 2.43% 2.23% 0.0% 4.30
Slide 15: Fundamentals have improved steadily
FY2020 Performance Review Our fundamentals have improved steadily, albeit impact of COVID-19 on profitability Return on Equity Cost-to-Income Ratio 10.3% 10.3% 50.0% 49.9% 9.1% 49.3% 8.6% 7.7% 48.0% 45.6% N1 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 N1: Excluding net ML Loan Loss Coverage N1
Slide 16: Board proposed final cash dividend of 7.65 sen per share
FY2020 Performance Review The Board has proposed a final cash dividend of 7.65 sen per share subject to DRP. Together with the interim dividend paid, total dividend of 17.65 sen per share represented 34.8% payout Dividend Per Share (sen) 50.1% 50.0% 35.7% 34.8% 30.8% 31.00 28.6% 30.0% 20.50 18.50 10
Slide 17: Strategy Update
Strategy Update
Slide 18: FIT22 Key Highlights in FY2020 – Making Steady Progress
FIT22 Key Highlights in FY2020 – Making Steady Progress Grow Affluent, leveraging on SME customer base Continue to win in the SME space Premier customers +13.8% to 79.4k; 33.9% are SME SME loans +11.3% to RM28.8 bil, RSME +9.3% owners SME e-Solutions enhanced through API integration - AUM of
Slide 19: Sustainability Update
Sustainability Update
Slide 20: Group Sustainability Framework and ESG Accolades
Group Sustainability Framework and ESG Accolades • RM5 bil Green Financing Commitment by 2025: • RM3.1 bil extended as at Dec-20, of which 16.8% is for renewable energy projects • ESG Risk Management • ESG risk-related activities identified under Prohibited Credits - implemented in Malaysia and Sust
Slide 21: 2021 Key Priorities
2021 Key Priorities Key Priorities for 2021 1. Roll out Group Sustainability Framework across regional operations 2. Strengthen our ESG risk management policies, processes and tools, which includes: • Identify and classify potential exposure to climate-related risks in line with our Risk Management
Slide 22: Repayment Assistance Update
Repayment Assistance Update
Slide 23: Remains committed in supporting customers through Repayment Assistance
Remains committed in supporting customers through Repayment Assistance Approved RA % of Outstanding Loan Balance No. of RM bil % accounts GROUP RETAIL 180,984 16.5 17% SME 1,697 3.3 15% Repayment Assistance COMMERCIAL & CORPORATE 61 5.7 12% (RA) as at TOTAL DOMESTIC 182,742 25.5 15% 31 March 2021 No
Slide 24: Dividend Reinvestment Plan (DRP)
Dividend Reinvestment Plan (DRP)
Slide 25: Introduction
Introduction RHB Bank proposes to establish a dividend reinvestment plan (“DRP”) which provides shareholders with an option to elect to reinvest their cash dividend in new RHB Bank shares (“DRP Shares”) (“Reinvestment Option”) (“Proposed DRP”) Rationale for Proposed DRP Provides RHB Bank with
Slide 26: Reinvestment Options
Reinvestment Options Shareholders will have the following Reinvestment Option: Shareholders’ Reinvestment Options Actions required from Shareholders Option 1 Reinvest the entire electable portion at the issue Shareholders must either: price of the DRP Shares (“Issue Price”) complete, sign and su
Slide 27: Details of Proposed DRP
Details of Proposed DRP Issue Price shall be fixed at not more than 10% discount to 5-day volume weighted average market Issue Price price (“VWAP”) of RHB Bank shares immediately before price fixing date. 5-day VWAP of RHB Bank Shares shall be adjusted ex-dividend before applying the aforementione
Slide 28: Sequence of Events After Establishment of Proposed DRP
Sequence of Events After Establishment of Proposed DRP Timeline Date Key events 17 Dec 2020 Announcement of Proposed DRP Announcement of a final dividend of RM0.0765 per RHB Bank share (“Final Dividend”) and the 26 Feb 2021 application of the Proposed DRP to the Final Dividend 55th Annual General
Slide 29: Concluding Remarks
Concluding Remarks
Slide 30: Concluding Remarks
Concluding Remarks Despite the unprecedented challenges brought about by COVID-19 pandemic, we have continued to be adaptive, resilient and supportive Our key priorities are ensuring business continuity, health and safety of our employees, and well-being and sustainability of our customers as we
Slide 31: RHB CSR Programme
RHB CSR Programme Page 31 of 32
Slide 32: 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