Hong Leong Bank Bhd · MYX:HLBANK
Hong Leong Bank Bhd — 9MFY19 Earnings Presentation
21 slides from Hong Leong Bank Bhd's earnings presentation, May 28, 2019
Slide 1: 9MFY19 Results Analyst Presentation
9MFY19 RESULTS ANALYST PRESENTATION 28 May 20191
Slide 2: Agenda: Financial Highlights 9MFY19
Agenda 1 Financial Highlights: 9MFY19
Slide 3: Key financial highlights
Key financial highlights Loan growth momentum accelerated while upholding solid asset quality Total Income Opex & CIR Operating Profit • Remains stable; driven mainly by healthy • Opex continues to be well-managed; CIR • Resilient business performance amidst on- growth in loan book underpinned by mo
Slide 4: Management guidance
Management guidance Management guidance remains on track Target FY19 Achieved 9MFY19 In line with Gross Loan Growth industry P 6.5% y-o-y ~85% LD Ratio (revised) P 82.0% 82.0% 1.98% (9MFY19) Net Interest Margin >2% ~ 2.00% (Q3FY19) Non-Interest Income Ratio >27% P 82.0% 27.7% Cost-to-Income Ratio <4
Slide 5: Profit & Loss
Profit & Loss Resilient performance underpinned by prudent cost control and solid associates contributions Profit After Tax Resilient Performance RM'mil 2,012 2,028 1,618 1,662 1,345 9MFY15 9MFY16 9MFY17 9MFY18 9MFY19 RM’mil 9MFY18 9MFY19 YoY % Total Income 3,663 3,558 -2.9% • Strong loan growth sup
Slide 6: Net Interest Income & NIM
Net Interest Income & NIM Stable margin despite persistent deposit competition in the third quarter 14 bps 2.12% y-o-y 1.98% Stable NIM RM'mil 2.9% 2.10% 2.03% 2,574 1.98% 1.98% 2.00% y-o-y 2,649 RM'mil 1.2% 7.7% 852 864 857 y-o-y 867 846 6,196 y-o-y 5,753 7.7% 2,041 2,078 2,077 y-o-y 1,929 1,967 16
Slide 7: Non-Interest Income
Non-Interest Income Stable contribution in 9MFY19; non-interest income ratio maintained at 28% FX Franchise 27.7% 27.7% 9MFY18 9MFY19 Stable RM149 mil RM149 mil 1,014 Forex: 984 of which 56 66 90 RM’mil 76 124 Credit Card Fees 453 259 9MFY18 9MFY19 7% Fee income: RM169 mil RM180 mil of which 438 436
Slide 8: Operating Expense
Operating Expense Costs well contained with continued focus on growth 43.9% 42.3% Composition of Operating Expenses Admin & 1,550 1,562 general 12% 193 189 Personnel RM’mil cost 121 126 Marketing 55% 8% 400 389 9MFY19 835 858 Establishment 25% 9MFY18 9MFY19 Personnel cost Establishment Marketing Adm
Slide 9: Loans
Loans Growth momentum accelerated amidst a slower credit environment Total Loans 406 133,590 2,101 5,656 RM’mil 125,427 Total Loans 9MFY18 Retail Business & Corporate International Operations Total Loans 9MFY19 SME 20,863 Residential 9MFY18 9MFY19 Singapore 9MFY18 9MFY19 Properties RM60 bil RM66 bil
Slide 10: Asset Quality
Asset Quality Outstanding asset quality supported by prudent loan loss coverage post MFRS9 Gross Impaired Loans Loan Impairment Coverage (LIC) 195% 177% 181% 1.61% 1.62% 1.63% 1.58% 1.45% 155% 151% 136% 0.96% 0.84% 0.87% 120% 116% 0.79% 0.80% 96% 89% RM'mil 1,203 1,126 1,075 948 957 95% 97% 91% 86%
Slide 11: Asset Quality
Asset Quality Indicators remained healthy with no major stress on portfolios Malaysia Overseas 1.01% 0.91% 0.79% 1,197 1.17% 1,113 Isolated case 997 0.19% of SGD23 0.09% 78 mil in SG 13 6 FY17 FY18 9MFY19 FY17 FY18 9MFY19 Group Residential Properties Transport Vehicles SME 0.58% 1.72% 0.54% 0.52% 1.
Slide 12: Deposit
Deposit Robust growth in line with strong loan growth traction CASA FD 3.6% 5.1% y-o-y y-o-y 5.7% y-o-y RM’mil CASA mix: RM’mil 24% 87,976 88,222 91,981 38,764 41,202 39,607 RM'mil 162,993 155,233 157,414 148,524 140,276 FY17 FY18 9MFY19 FY17 FY18 9MFY19 Individual Business Enterprise 3.4% y-o-y 9.5
Slide 13: Liquidity & Capital
Liquidity & Capital Healthy liquidity and capital positions supportive of business growth Loan Deposit Ratio (LDR) Capital Adequacy^ 16.3% 16.4% 16.3% 16.1% 89.3% 91.3% 91.3% 89.6% 84.0% 15.3% 13.3% 13.1% 13.3% 13.6% 12.7% 80.9% 81.2% 80.6% 82.0% 82.0% 12.6% 12.4% 12.7% 12.6% 12.0% FY15 FY16 FY17 FY
Slide 14: Shareholder Value
Shareholder Value Returns came in within guidance on sustained nine months performance Return on Equity & Return on Assets Net Assets & Earnings Per Share 35 34 34 31 31 11.3% 11.7% 11.1% 10.3% 11.9 12.0 12.2 11.4 11.7 1.31% 1.37% 1.32% 1.21% Q2FY19 Q3FY19 9MFY18 9MFY19 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q
Slide 15: Performance of Associated Company: Bank of Chengdu
Performance of Associated Company: Bank of Chengdu Co., Ltd. Financial Highlights for Q1 ended 31 March 2019 (unaudited) Operating Income Profit After Tax RMB'mil RMB'mil Robust ROE 15.9% 3,003 2,569 1,267 17% 1,031 23% Solid Cost-to-income Q1FY18 Q1FY19 Q1FY18 Q1FY19 Ratio <25% Gross Loan GIL ratio
Slide 16: Agenda: Closing Remarks
Ill Agenda ll Closing Remarks
Slide 17: Digital Banking
Digital Banking HIGHLIGHTS FOR 9MFY19 Retail Active Mobile Transactional Transactional Users Users Users Volume +25% +49% +36% +30% Wholesale Users Transactional Transactional Transactional Value Users Volume +17% +18% +34% +6% Surge in adoption of the new DuitNow service cv Each month, transaction
Slide 18: Summary
Summary Accelerated growth momentum delivered sustainable results in 9MFY19 Loan growth momentum gained traction. Tightly managed expenses. Asset quality remains solid. BOCD: Consistently strong profit contribution. Liquidity and capital positions remain robust post adoption of MFRS9. Co
Slide 19: Group Performance
Group Performance Change Change Change RM’mil 9MFY18 9MFY19 Q3FY19 % (YoY) % (YoY) % (QoQ) Net interest income 2,649 2,574 -2.9% 857 -1.2% -0.8% Non-interest income 1,014 984 -2.9% 310 -20.4% 11.3% Total income 3,663 3,558 -2.9% 1,167 -7.1% 2.2% Operating expenses (1,550) (1,562) 0.8% (525) -0.2% 2.
Slide 20: HLISB - Key financial highlights
HLISB - Key financial highlights Total Net Income Opex & CIR Profit after Tax & Zakat • Top-line driven by strong financing income • Expenses prudently managed; further • Consequently, bottom-line improved 20% on and lower allowance on financing improvement to CIR solid business performance impairme
Slide 21: Thank You / Disclaimer
Disclaimer This presentation has been prepared by Hong Leong Bank (“HLB”) for selected recipients for information purposes only and the information contained herein has been obtained from sources believed to be reliable. The information contained herein is believed to be correct as of the date of th
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