Rhb Bank Bhd. · MYX:RHBBANK
Rhb Bank Bhd — RHB Capital Berhad — Q3 2011 Earnings Presentation
29 slides from Rhb Bank Bhd's earnings presentation, Nov 29, 2011
Slide 1: RHB Capital Berhad 3rd Quarter 2011 Financial Results
RHB Capital Berhad 3rd Quarter 2011 Financial Results Mr. Kellee Kam Managing Director RHB Capital Berhad 29 November 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 3rd Quarter 2011 Financial Results Review 3 To Sum Up 3 RHB Banking Group
Slide 4: Since We Last Spoke (1/3)
Since We Last Spoke (1/3) Easy by RHB o 220 outlets currently, on track to achieve target of 240 outlets by year end POS Shared-Banking Business o 319 Shared-Banking Services at POS office went live Expansion/ Tie-ups Business Banking o First in Malaysia to provide Enhancer Direct Scheme which
Slide 5: Since We Last Spoke (2/3) Strategic Rationale for OSK
Since We Last Spoke (2/3) Strategic Rationale for OSK Domestic scale-up for RHB Capital (“RHBC”) and creation of one of Malaysia's 1 largest investment banks and brokerage houses 2 Immediate access to important strategic markets in the region with long-term growth potential 3 Highly complementary fr
Slide 6: Since We Last Spoke (3/3)
Since We Last Spoke (3/3) Appointment of the following in RHB Bank effective 14 November 2011: Management o Johari Muid - Managing Director o Renzo Viegas - Deputy Managing Director Easy by RHB - „Best Brand Strategy‟ at the Advertising + Marketing Magazine Awards 2011 CIO of RHB Bank - „One o
Slide 7: RHB Capital Group Financial Report Card
RHB Capital Group Financial Report Card RHB Capital Group Scorecard 2011 Top level Target indicators FY 10 2011 9M 2011 ROE 15.2% >15.2% 14.6% N1 (%) ROA (%) 1.2% >1.2% 1.1% N1 Gross Impaired 4.4% 4.0% 3.7% Loans Ratio (%) Loans Growth 20.2% >15% 17.3% N1 (%) Deposits 11.3% >15% 21.6% N1 Growth (%)
Slide 8: Agenda
Agenda 1 Since We Last Spoke 2 3rd Quarter 2011 Financial Results Review 3 To Sum Up 8 RHB Banking Group
Slide 9: Key Financial Highlights – 3rd Quarter 2011
Key Financial Highlights – 3rd Quarter 2011 9M 2011 net profit of RM1,153.1 million, up 11% y-o-y EPS at 53.1 sen, up 10% y-o-y Annualised ROE and ROA at 14.6% and 1.1% respectively Cost to Income ratio increased to 44.0% from 40.5% in 9M 2010 Total assets increased by 15.7% to RM149.6 bil
Slide 10: Quarterly Profitability
Quarterly Profitability RM mil 1000 15.6% 15.3% 15.2% 900 15.1% 15.1% 15.2% 15.0% 800 14.6% 14.5% 14.6% 700 1,899 600 524 512 528 492 1,538 1,532 500 474 1,420 448 453 380 382 395 376 1,201 400 1,153 350 339 351 300 200 100 0 Q110 Q210 Q310 Q410 Q111 Q211 Q311 2009 2010 9M 11 Profit Before Taxation
Slide 11: Summary of Income Statement
Summary of Income Statement Q-o-Q Y-o-Y Q3 Q2 9M 9M Change Change RM mil 2011 2011 2011 2010 % % Net Interest Income 695 702 -1 2,078 1,934 7 Other Operating Income 216 316 -32 798 764 4 Income From Islamic Banking Business 120 83 45 295 244 21 Total Income 1,031 1,101 -6 3,171 2,942 8 Other Operati
Slide 12: Analysis of Total Income
Analysis of Total Income Q-o-Q Y-o-Y Q3 Q2 9M 9M Change Change RM mil 2011 2011 2011 2010 % % Net Interest Income 695 702 -1 2,078 1,934 7 Other Operating Income 216 316 -32 798 764 4 Income From Islamic Banking Business 120 83 45 295 244 21 Total Income 1,031 1,101 -6 3,171 2,942 8 2.82% 2.82% Tota
Slide 13: Other Operating Expenses
Other Operating Expenses Q-o-Q Y-o-Y Q3 Q2 9M 9M Change Change RM mil 2011 2011 2011 2010 % % Personnel Costs 297 279 6 874 706 24 Establishment Costs 101 93 9 285 267 7 Marketing Expenses 42 27 56 96 81 19 Admin & General Expenses 48 60 -20 141 137 3 Other Operating Expenses 488 459 6 1,396 1,191 1
Slide 14: Allowance for Impairment on Loans, Financing and Other Losses
Allowance for Impairment on Loans, Financing and Other Losses Q-o-Q Y-o-Y Q3 Q2 9M 9M Change Change 2011 2011 2011 2010 RM mil % % Individual Impairment Allowance (1) 50 > -100 42 183 -77 Collective Impairment Allowance 147 120 23 432 314 38 Impaired Loans and Financing Recovered (117) (48) >100 (24
Slide 15: Key Balance Sheet Items
Key Balance Sheet Items Change for Y-o-Y Sept Dec Sept 9M 2011 Change 2011 2010 2010 % % RM mil Total Assets 149,580 129,325 127,116 16 18 Total Financial Assets/Investments 27,050 25,017 26,322 8 3 - Financial Assets HFT 1,441 772 1,604 87 -10 - Financial Investments AFS 12,535 13,375 13,587 -6 -8
Slide 16: Loans, Advances and Financing
Loans, Advances and Financing Change for Sept Dec Sept Y-o-Y 9M 2011 RM mil 2011 2010 2010 Change % % Working Capital 21,291 20,694 21,106 3 1 Purchase of Residential Property 20,246 18,841 17,962 7 13 Purchase of Non-Residential Property 5,321 4,761 4,686 12 14 Purchase of PPE Other Than 3,195 3,33
Slide 17: Diversified Loan Profile
Diversified Loan Profile Composition of Loan Book - Improved Diversity of Loan Book by Interest/Profit Rate Sensitivity 2% 2% 1% 1% 1% 7% 7% 5% 6% 6% 5% 11% Fixed Rate 12% 32% Variable Rate 39% 68% 36% 34% 28% 27% 25% 16% 17% 16% 13% 12% 15% Composition of Loan Book - by Strategic Business Group 42%
Slide 18: Asset Quality
Asset Quality New Impaired Loans Formation Improved to 0.78% from Gross Impaired Loans Ratio Improved by 0.73% to 3.66% 1.71% a year ago RM mil % Net decrease of RM211 mil 8,000 6.0 6.66 6.46 4.95 5.00 4.98 5.90 5.64 6,000 4.67 2,626 -2,481 4,000 -356 4.0 4.39 4.12 3.96 3.88 3.84 3.90 3.66 3.62 3.48
Slide 19: Customers Deposits
Customers Deposits Customers Deposits Customers Deposits : Composition Change Y-o-Y Sept Dec Sept for 9M 100% Change 6% 6% RM mil 2011 2010 2010 2011 % % 90% Fixed Deposits 82,951 68,830 66,275 21 25 21% 19% 80% of which: MMTD 26,628 24,505 24,392 9 9 70% Demand Deposits 20,515 19,523 19,156 5 7 24%
Slide 20: Loans and Deposits
Loans and Deposits Loans Customers Deposits RM bil RM bil 200 20% 25% 250 50% 17%^ 32% 13% 22% ^ 30% 10% 10% 15% 200 15% 12% 15% 11% 150 9% 13% 13% ^ 10% 11% 5% 150 17% 13% ^ 8% 94.6 9% 7% 6% 7% 109.7 100 83.7 -2% -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 -2
Slide 21: Retail Business Performance
Retail Business Performance RM mil 7.7% 7.3% 7.1% 7.4% 7.7% 7.5% RM mil 18,841 20,246 14,089 16,002 12,864 13,153 6.9% 6.6% 7.2% Mortgage 6.5% 6.7% 5.7% 4,654 2006 2007 2008 2009 2010 Sept 2011 3,535 Mortgage Loans Market Share Personal 2,749 2,385 2,601 Use 2,004 RM mil 22.9% 15.6% 5,905 2006 2007
Slide 22: Easy Performance
Easy Performance 208 SGAM Best Process Effies 2010 Silver Award Innovation Award 18 111 40 Number of 41 Award The Asian Banker Award IDC Financial Insight Award Outlets 7 Winning 19 Innovation 32 109 53 The BrandLaureate Awards Banking & Payment Asia 2 14 Trailblazer Awards 2011 July 2009 Dec 2009 D
Slide 23: Insurance Business Performance
Insurance Business Performance General Insurance - Gross Premium Bancassurance - Gross Premium RM mil 2.6%^ RM mil 2.3% 2.3% 2.1% 1.8% 1.9% 75% 233 305 297 271 107 232 133 179 200 62 126 71 2006 2007 2008 2009 2010 9M 11 2010 Sept 2011 ^ As at June 2011 Gross Premium Market Share Credit Related Prem
Slide 24: Domestic Market Share - CIB
Domestic Market Share - CIB YTD Sept 2011 YTD June 2011 FY 2010 Market Market Rank Rank Market Share Rank Share Share Mergers & Acquisitions # 26.3% 3rd 30.1% 1st 58.8% 1st Equities ^* 8.2% 4th 5.5% 4th 7.7% 3rd Debt Capital Market** 7.5% 4th 8.6% 5th 9.9% 3rd ## Broking (By Value) 8.5% 2nd 7.0% 3rd
Slide 25: Capital Position (1/2)
Capital Position (1/2) RHB Bank RHB Islamic Bank RM bil RM bil 17% 15% 14.6% 15.7% 14.0 14.9% 15.0% 13.5% 13.6% 14.0% 1.5 13.2% 13.8% 12.7% 13% 13.0% 12.0 11.7% 13% 11.8% 12.7% 12.1% 12.2% 11.8% 10.8%^ 11% 11.4% 11.5% 10.0 10.5% 10.5% 10.8% 10.8% 10.5% 9% 9.9% 8.4 8.4 9% 1.0 9.4%^ 8.8% 7.9 7.9 0.9 0
Slide 26: 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% 31.8% 29.5% 31% 146% 147% 1.2 28.3% 27.3% 25.2% 0.6 26% 1.0 22.7% 27.7% 0.55 0.56 0.56 26.7% 0.54 0.55 24.1% 22.9% 21% 0.51 130% 22.2% 21.4% 0.50 0.5 0.8 17.9% 16% 0.6 0.6 0.5 0.4 0.5 11% 0
Slide 27: Agenda
Agenda 1 Since We Last Spoke 2 3rd Quarter 2011 Financial Results Review 3 To Sum Up 27 RHB Banking Group
Slide 28: To Sum Up
To Sum Up 1 Q3 2011 results impacted by MTM and continued rising cost of funds - will impact full year performance; 2 Generally on track on distribution expansion, and loans and deposits targets; 3 Continue executing on stated strategies but will adopt a more cautious approach given developing globa
Slide 29: End
End STRICTLY PRIVATE & CONFIDENTIAL