Rhb Bank Bhd. · MYX:RHBBANK
Rhb Bank Bhd — Shareholder Meeting (April 2017)
24 slides from Rhb Bank Bhd's shareholder meeting presentation, Apr 26, 2017
Slide 1: RHB Bank Berhad 51st Annual General Meeting 2017
RHB® RHB BANK BERHAD 51" ANNUAL GENERAL MEETING 2017 26 April 2017
Slide 2: Presentation to Shareholders
RHB BANK BERHAD 51st ANNUAL GENERAL MEETING Dato’ Khairussaleh Ramli Group Managing Director Presentation To Shareholders 26th April 2017
Slide 3: Overview
Overview FY2016 Performance Review IGNITE 2017 2017 Outlook
Slide 4: 2016 Highlights
2016 Highlights ♦ Completed Group Internal Reorganisation with listing of RHB Bank in June 2016, creating a leaner and stronger capitalized group, and well positioned for future growth ♦ Launched our new brand promise “Together We Progress” to mark our commitment towards delivering simple, fast and
Slide 5: FY2016 Performance Review
Overview FY2016 Performance Review IGNITE 2017 2017 Outlook
Slide 6: The restructuring resulted in a stronger capitalised Group
The restructuring resulted in a stronger capitalised Group which is well positioned for future growth RHB Bank RHB Bank Group 17.2% 13.1% 13.1% 13.4% 15.4% 13.4% 15.2% 12.8% 10.9% 11.3% 10.7% 11.0% CET 1 Capital Tier 1 Capital Total Capital CET 1 Capital Tier 1 Capital Total Capital 2015* 2016^ * Ra
Slide 7: 8.4% growth in pre-provisioning operating profit
We delivered a healthy 8.4% growth in pre-provisioning operating profit on the back of higher net fund based income and lower overheads, though higher provisions, mainly in the oil & gas sector affected our bottom line Total Fund Based Non-Fund Income Income Based Income +0.3% +3% -6% 2016: RM6.2 bi
Slide 8: Net fund based income growth and NIM improvement
Active management of funding and liquidity resulted in good net fund based income growth and NIM improvement, mitigated by OPR reductions in July 2016 Y-o-Y: +3% 9.77 9.88 5.58 5.56 4.19 4.32 2015 2016 Fund Based Income Fund Based Expenses Net Fund Based Income NIM 2.14% 2.18% Page | 8
Slide 9: Non fund based income growth in asset management, trading and insurance
Asset management, trading/investment and insurance continued to deliver strong non fund based income growth, though slow down in capital and financial markets and fx fluctuations affected fee income Non Fund Based Income Y-o-Y Y-o-Y: -6% RM’mil 2016 2015 Change Total Fee Income (A) 1,143 1,261 -9% F
Slide 10: Expenses well contained from strong cost management
Expenses well contained from a strong focus on cost management. Personnel costs reduction was mitigated by continued IT investment Operating Expenses FY2016 Restated % Change (RM’mil) FY2015 Personnel Costs Excluding CTS 1,767 2,007 -12% Establishment Costs 731 736 -1% Marketing Expenses 238 241 -1%
Slide 11: Loans grew 2% year-on-year
Loans grew 2% year-on-year in line with selective pursuit of growth based on profitability; growth driven mainly by Mortgage and SME Loans, Advances and Financing FY 2016 Restated % Change (RM’bil) FY 2015 Retail Banking 70.1 68.2 +3% of Which: Mortgage 40.9 35.5 +15% Business Banking 22.1 19.8 +12%
Slide 12: Deposits grew 5% with CASA growing 12%
Overall deposits grew 5% with CASA outpacing the market to grow 12%; CASA composition improved from 24.0% to 25.6% Deposits by Type FY 2016 FY 2015 (RM’bil) Restated % Change Fixed DepositsN1 123.3 120.2 +3% CASA 42.5 38.0 +12% Demand Deposits 33.2 29.5 +13% Savings Deposits 9.3 8.5 +9% Total Deposi
Slide 13: Asset quality impacted by oil and gas accounts
Asset quality impacted by certain corporate accounts in oil and gas and pre-emptive provision for legacy steel related exposure RM’bil RHB Capital RHB Bank 5.0 0 2.99% 2.81% 2.03% 1.88% 2.43% 4.5 0 4.0 0 0.13% 0.37% 0.14% 0.31% 0.39% 3.5 0 3.75 3.43 3.0 0 3.34 2.89 2.84 2.5 0 -10.00% N1 2012 2013 20
Slide 14: Market value improved, total shareholders' returns 18.7%
Our market value has improved and total shareholders’ returns stands at 18.7%, exceeding market benchmarks RHB Capital RHB Bank 7.69 7.90 7.62 5.67 7 5.31 7.00 4.68 4.71 5.00 5 21.3 19.2 20.1 19.6 3 18.8 18.9 3.00 17.4 1 1.00 -1 -1.00 -3 -3.00 5.0 -5 5.0 -5.00 2012 2013 2014 2015 28 Jun N1 31 Dec 25
Slide 15: Proposed final cash dividend of 7 sen per share
The Board has proposed a final cash dividend of 7 sen per share, total dividend of 12 sen per share with 29% payout Dividend Per Share (sen) RHB RHB Capital Bank 22.09 16.30 12.00 12.00 16.09 10.30 6.00 12.00 7.00 6.00 6.00 6.00 5.00 2012 2013 2014 2015 2016 Interim Final Dividend Payout Ratio & DRP
Slide 16: IGNITE 2017
Overview FY2016 Performance Review IGNITE 2017 2017 Outlook
Slide 17: IGNITE 2017 continues to deliver value (1/2)
IGNITE 2017 continues to deliver value (1/2) Retail Banking Business & Transaction Banking Page | 17
Slide 18: IGNITE 2017 continues to deliver value (2/2)
IGNITE 2017 continues to deliver value (2/2) Wholesale Banking Digital & Payments Shariah Business Profit Before Tax Retail AUM Page | 18
Slide 19: Maintained leadership position in Investment Banking
Maintained leadership position in Investment Banking Major Investment Banking Deals DCM (#136 issues) ECM (#28 deals) M&A (#16 deals) RHB Capital Bhd Malaysia Building Society Bhd RM3.61 bil Internal Reorganisation of Sarawak Hidro Sdn Bhd RM2.90 bil Rights Issue the RHB Capital Group RM5.54 bil Suk
Slide 20: Accolades and recognition for Group's achievements
Accolades and recognition for Group’s achievements ♦ The Most Outstanding Islamic Corporate Bank ♦ Best Mergers & Acquisitions ♦ Best Privatisation ♦ Best Initial Public Offering ♦ The Most Outstanding Islamic Shariah Advisor Board ♦ Top bank in the secondary market – Corporate Bonds Malaysia. ♦ The
Slide 21: 2017 Outlook
Overview FY2016 Performance Review IGNITE 2017 2017 Outlook
Slide 22: Economic Outlook 2017
Economic Outlook 2017 Malaysia’s GDP is forecast to grow 4.5% in 2017: 1 • Domestic demand to remain resilient • Exports to show moderate recovery, on the back of higher commodity price, better electrical & electronics export and improving global trade outlook • Public spending and private investm
Slide 23: Concluding Remarks
Concluding Remarks We recorded strong pre-provisioning profit in 2016, primarily from 1 prudent funding cost management and lower overheads, though performance was affected by higher impairment We are making good progress on our IGNITE Transformation 2 programme, with commendable results for SME
Slide 24: www.rhbgroup.com
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 to be corre